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Hi,
Imagine this: you just accepted a new job with higher pay and benefits. But a few days later, you get a letter from your former boss threatening to sue you if you take the new position.
It might sound absurd, but this can and does happen to fast food workers, baristas, janitors, journalists, interns, and others whose employers forced them to sign noncompete agreements. Under current law, these ridiculous noncompetes are legal in most states.1
Thankfully, the Federal Trade Commission (FTC) is now moving to ban noncompetes. But corporate special interests don’t want this to happen, and are lobbying hard to stop the FTC from taking this important action. They've even threatened to sue the agency.2 We need to show that the people support the FTC’s proposed ban.
Sign the petition: The FTC must protect workers and ban noncompete clauses!
To see how ludicrous noncompetes are for low wage workers, you only need to read one of the contracts. For instance, sandwich chain Jimmy John’s has forced workers to sign noncompetes that “prohibited employees during their employment and for two years afterward from working at any other business that sells ‘submarine, hero-type, deli-style, pita, and/or wrapped or rolled sandwiches’ within 2 miles of any Jimmy John’s shop in the United States.”3
In the past, noncompetes were only used for high level executive positions. But now most noncompetes are used by big corporations against low-wage workers, preventing them from finding new jobs, high pay, and better benefits. As President Biden said, “One in five workers without a college education is subject to non-compete agreements. They're construction workers, hotel workers, disproportionately women and women of color." The FTC estimates that banning noncompetes would increase worker pay by up to $300 billion per year.4
Noncompetes also stifle innovation and competition. As Teen Vogue explained, “Not competing is in the name!” If a worker under a noncompete develops a brilliant new innovation in their field, legally they can’t quit their job to start their own business.1
Corporate special interests are currently lobbying in D.C. to preserve noncompetes. Now is the time to urge the FTC to follow through and end these anti-worker contracts.
Add your name: the FTC must ban noncompetes to stop worker exploitation and encourage innovation!
Thank you for taking action,
Joey and the team at Demand Progress
Sources:
1. Teen Vogue, “Noncompete Clauses: What Are They and How Is the FTC Trying to Ban Them?,” January 18, 2023.
2. CNBC, “U.S. Chamber of Commerce threatens to sue the FTC over proposed ban on noncompete clauses,” January 12, 2023.
3. Reuters, “Jimmy John's settles Illinois lawsuit over non-compete agreements,” December 7, 2016.
4. NPR, “Millions of workers are subject to noncompete agreements. They could soon be banned,” January 5, 2023.
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