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Monday, April 27, 2026

Hiltzik: On the eradication of noncompete clauses - Los Angeles Times

Whenever a government agency proposes a regulation that might help workers by reining in an employer abuse, you can count on some heavy breathing from the big business lobby.

Case in point: The Federal Trade Commission’s move to ban noncompete clauses in employment contracts, which forbid ex-workers to take jobs in their chosen field, sometimes for years after they quit and often within hundreds of miles of their former employer. About one in five American workers — 30 million people — are bound by these restrictions.

The FTC’s target is a good one. “By preventing workers across the labor force from pursuing better opportunities that offer higher pay or better working conditions, and by preventing employers from hiring qualified workers bound by these contracts, noncompetes hurt workers and harm competition,” the commission wrote in issuing its rule proposal on Jan. 5.

The U.S. Chamber of Commerce provided the heavy breathing on Jan. 22, through an op-ed in the Wall Street Journal over the byline of the chamber’s president and chief executive, Suzanne P. Clark.

By preventing workers across the labor force from pursuing better opportunities that offer higher pay or better working conditions...noncompetes hurt workers and harm competition

For Clark, the proposal was a sign that FTC Chair Lina Khan “doesn’t intend to let the law or Constitution get in her way” as she tries to level the playing field between employers and employees.

The chamber, she writes, will fight the...



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