WASHINGTON, DC — This morning, the Federal Trade Commission voted 3-1 to initiate a rulemaking that would prohibit employers from imposing noncompetes on workers. This unfair, exploitative practice blocks workers from freely switching jobs, suppresses wages for millions of Americans, and stifles innovation.
In response to the vote, Demand Progress Education Fund Executive Director David Segal issued the following statement:
“For too long, massive corporations have been allowed to use noncompetes to block workers from freely changing jobs, negotiating for better pay, or starting businesses of their own. Today’s vote from the FTC is a step forward toward banning this unfair practice that hurts millions of workers and prevents new businesses from being able to compete on equal ground. In a time when millions of Americans are struggling to afford their basic needs, we should be providing more opportunity — not less. This vote is an important move that opens more opportunities for both workers and small businesses to thrive.”