Results for: Worker Mobility

In a landmark decision, the Federal Trade Commission (FTC) has voted to prohibit noncompete agreements, a common practice that has been criticized for stifling worker mobility and suppressing wages. The rule, which takes effect in August, affects all industries and requires companies to scrap existing noncompete agreements. Critics argue that the FTC lacks the authority to enact such a broad rule, and several lawsuits have already been filed to challenge it. Unions and worker advocates, however, commend the move as a victory for workers’ rights.

The Federal Trade Commission (FTC) has approved a rule prohibiting noncompete agreements, effectively barring employers from preventing employees from pursuing jobs with competitors. This measure aims to protect workers and foster a more dynamic job market. The FTC contends that noncompetes harm workers by hindering their ability to switch jobs for higher pay, thereby disadvantaging both individuals and the overall economy. Despite criticism from business groups who argue that the FTC is overextending its authority, the rule is scheduled to take effect in six months unless it faces legal challenges.

In a landmark move, the Federal Trade Commission (FTC) has approved a rule banning the use of noncompete agreements by US companies. These agreements, which prohibit employees from joining competing firms for a certain period, have historically been common among high-level executives but have recently spread to lower-earning workers. The FTC estimates that around 30 million people, or 20% of the workforce, are currently subject to these restrictions.