Approximately one out of every five American workers has signed an
agreement to restrict where they can work and who they can work for. Many of them do not even know it. But the clauses, inserted in work contracts and known as “noncompete” agreements, prevent workers from moving from one company to another in the same industry.
This is not just for corporate executives with high-level trade secret information; janitors, dog groomers, fast food workers and more have been subject to these constraints. And the newly energized Federal Trade Commission has vowed to put a stop to it.
In the latest piece for our Prospect special issue on implementing the Biden agenda, editor at large Harold Meyerson writes about noncompete agreements and how the proposed ban fits with the beginning of the restoration of economic liberties for workers. This is being done through the executive branch because Congress has refused to act, and it’s another of the critical implementation measures that have taken on new importance in divided government.
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