From Al Tompkins | Poynter <[email protected]>
Subject The FTC may soon ban noncompete agreements
Date January 9, 2023 11:00 AM
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And companies would have to tell employees they are free to go. Plus, how producing fewer cars produces higher profits, and more. Email not displaying correctly?
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The One-Minute Meeting
The days of the noncompete contract may be numbered. Millions of American workers — from journalists to chefs to hair stylists — will be free to walk across the street to a competing company and work. Close to a third of American businesses forbid employees from taking jobs with a competitor, sometimes for a year or longer after their employment ends. And many of these noncompete contracts are for low-paying jobs, not corner office CEO positions.

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If the Federal Trade Commission follows through with its plan, employers will have to send letters to workers now restrained with noncompete contracts telling them they are free to work wherever they wish. This will ripple through the TV journalism world, where noncompete clauses are common, and lowly paid producers, MMJs and others have to move cities if they want to change jobs.

The auto industry, a significant employer for many of your communities, suffered supply-chain and manpower problems in the last couple of years and still produced huge profits. It is an example of how to produce fewer widgets and still make more money by creating a shortage that forces prices up. Experts say once prices are higher it is difficult to bring them back down. The average new vehicle sold for just under $49,000 in November, according to Kelley Blue Book. I wonder what this is doing to the budgets of companies and government agencies that buy fleets of vehicles, including police departments.
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