Friends -
The Biden Administration recently proposed a rule from the Federal Trade Commission to ban noncompete clauses. I was excited to hear about this potential change because it would be a big win for workers and innovation.
I've spent the last five years building bipartisan support in Congress to limit noncompete agreements. Noncompete agreements suppress wages, squash competition and make it harder for people to move up into new jobs. One study estimates changing this policy could grow wages by $300 billion annually.
That's why I introduced the bipartisan Workforce Mobility Act to get rid of them, and I’m working to build public support for the FTC’s rule and this legislation.
ADD YOUR NAMEThe point of these clauses is to keep wages down and stifle competition. They prevent workers, particularly low-income workers, from going out and getting a better job and increasing their wages.
These agreements also hinder innovation. Many workers are discouraged from starting their own ventures because of the risk of litigation over noncompete clauses. It’s no coincidence that the most dynamic place for tech innovation, California, banned noncompetes.
My hope is that the FTC’s new rule goes into effect. But we should try to get this legislation through Congress because the next President can just reverse the FTC rule.
The corporate lobby is going to fight to keep these clauses in place in order to depress wages and competition. We need to up the public pressure so my colleagues and the powers in Washington know that the American people are with us.
Thanks for adding your voice on this issue.
Every best wish,
Chris Murphy
ADD YOUR NAMEPaid for by Friends of Chris Murphy
Friends of Chris Murphy
PO Box 230987
Hartford, CT 06123
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