NEWARK – Attorney General Matthew J. Platkin today announced that New Jersey is co-leading a multi-state letter with the District of Columbia and California in support of the Federal Trade Commission’s proposed rule that would eliminate non-compete clauses in employment contracts in most circumstances.
In a letter sent today to Federal Trade Commission Chair Lina Khan, Attorney General Platkin joined the District of Columbia Attorney General Brian Schwalb and California Attorney General Rob Bonta in co-leading a group of 18 Attorneys General supporting the proposed national rule.
In January the FTC proposed the Non-Compete Clause Rule, which would bar employers from preventing workers from working for or starting a competing business within a certain time period after leaving a job. Approximately 18 percent of labor force participants were bound by non-competes in 2014, and 38 percent had agreed to one in the past, usually because employers insisted on them, and employees lacked a meaningful ability to negotiate them. The proposed rule concludes that non-competes are an unfair method of competition which can depress worker wages, reduce racial and gender equality in workplaces, and create legal hurdles for employees looking to grow their careers. Currently, the legality of such noncompete agreements is left to the states, creating confusion for workers and distorting labor markets that cover more than one state.
“I applaud the Federal Trade Commission’s step towards...
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