President Biden Issues Order That Could Ban Non-Compete Agreements for Most Workers

Tens of millions of American workers are subject to non-compete agreements — but the Biden administration wants to put an end to the large share of those provisions that it says unduly limit workes’ ability to change jobs and seek higher wages. On Friday, the President issued an executive order asking the Federal Trade Commission (FTC) to use their power to “curtail the unfair use of non-compete clauses and other clauses or agreements that may unfairly limit worker mobility.” The request was part of a sweeping order focused on promoting competition throughout the American economy at a time when corporate consolidation has weakened the position of workers, small businesses and consumers and given large companies the upper hand. About half of private-sector employers require at least some of their workers to sign non-compete agreements, which typically ban them from working for a competing business — or starting one themselves — for a certain period of time after leaving their jobs, according to a 2019 national survey by the Economic Policy Institute (EPI). The organization argues that such clauses are part of a larger trend of companies limiting the rights of employees, contributing to decades of mostly-stagnant wages for the majority of workers. Non-competes

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