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Dear John,
Some 30 million Americans are trapped by contracts that say if they leave their current job, they can't work for a rival company or start a new business of their own.
These clauses are called non-compete agreements and, frankly, they’re a dirty trick many employers use to keep their employees from getting a better job. They block workers from seeing higher wages or better working conditions. And they enlarge corporate monopoly power by stifling competition.
But that could all end soon. A sweeping new rule from the Federal Trade Commission would put a stop to these non-compete agreements. Please take a couple of minutes to check out our latest video breaking it all down and then help increase our reach by sharing it on your social media.
The FTC estimates that banning non-compete agreements could increase wages by nearly $300 billion a year overall by allowing workers to pursue better job opportunities.
Employers say they need non-compete agreements to protect trade secrets and investments they put into growing their businesses, like training workers.
Rubbish.
The real purpose of non-competes is to make it harder (or impossible) for workers to bargain with rival employers for better pay or working conditions. In fact, workers in states that have banned non-compete agreements have seen larger wage increases and more job mobility than workers in states where they are still legal.
Check out our latest video to learn more about how the FTC’s sweeping rule change could help you or someone you know who has had to sign a non-compete agreement on the job.
Thanks for watching,
Robert Reich
Inequality Media
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