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FTC Poised To Give HUGE WIN To Millions Of Workers | Sarah Miller | TMR
The US Federal Trade Commission (FTC) has proposed a ban on non-compete agreements which prevent workers from moving to another similar company or starting a business in the same field. This decision could potentially increase employee earnings by $300 billion per year. The most common argument for the necessity of non-compete clauses is the safeguarding of valuable trade secrets, but a recent report by the US Treasury Department found that employers often ask workers to sign non-compete clauses in fields without sensitive workplace information. The report also showed that non-compete agreements have become standard across almost every industry, trade secrets or not.
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I want to welcome you to the program Sarah Miller. She's the executive director and founder of the American economic Liberties project. Sarah is welcome to the program. Hi thanks for having me. Lena Khan has been very busy over the past couple of days in particular. But I mean really since she's been the chair of the FTC. There are two things I want to talk to you about. One is that it is a proposed ban on non-compete agreements. My understanding is that the comment period has started. it is probably about 58 more days or something like that, maybe 57. Where people can comment on this proposed rule. It was voted on three to one to get to this stage where they will take the comments from the public. Give us some background on this proposed ban. Great. So non-competes face roughly one in five workers in the country. and that's around 30 million people. They affect High-income workers like Executives. There's a very high prevalence of their use among that cohort of the workforce. But from a numbers perspective, they affect more kinds of mid-wage and hourly workers. Janitors security guards hair stylists Fitness instructors nurses and doctors and veterinarians and journalists. They are just really a pretty staple feature of employment contracts at this point. And have really been popularized over the last 20 years. So several states have kind of stepped up to try to regulate the use of these non-compete agreements but what the FTC is proposing is a complete ban on including these agreements and employment contracts. And then they're also kind of going even further and looking at sort of implicit ways that employers tend to try to tie workers to their jobs like through things like training repayment agreement Provisions or traps which require you to pay your employer training costs if you need to take a new job and there's a whole lot of worker harms directly that result from non-compete agreements and then broader economic harms which we should dive into. let's dive into I mean those. I mean we know about you know I mean talk about wage suppression but it goes beyond that.
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