If allowed to go into effect, the FTC’s rule banning non-compete “agreements” are expected to increase worker earnings by $488 billion over the next decade.
WASHINGTON, DC – Tuesday’s Senate Committee on Banking, Housing, and Urban Affairs hearing, titled Banning Noncompete Agreements: Benefits for Workers, Businesses, and the Economy, underscored the urgent need for action to safeguard the rights of workers across the country and push megacorporations towards fairer practices.
Committee members highlighted the benefits of the Federal Trade Commission’s final rule banning non-competes nationwide, which is expected to boost worker earnings by $488 billion over the next decade. The rule is currently making its way through the court system after a Trump-appointed Northern District of Texas Federal Judge partially blocked its implementation earlier this month, following legal challenges from the corporate-funded U.S. Chamber of Commerce and Ryan LLC.
“Non-compete clauses force many Americans to endure low wages and substandard working conditions,” said Liz Zelnick, director of economic security and corporate power at Accountable.US. “The FTC’s ban on the outdated practice is poised to open the door for millions of American workers to begin pursuing better opportunities. No thanks to the U.S. Chamber and its cheerleaders in Congress, many workers will continue paying more for health care while earning less until the Biden-Harris administration action works its way past industry legal obstruction.”
Hearing Highlights
- WATCH Senator Elizabeth Warren: Non-compete clauses trap 30 million Americans in low-wage, dead-end jobs with no chance for growth.
The FTC and the Biden-Harris administration are stepping up to end this unfair practice and unlock opportunities for everyone. [VIEW FULL CLIP]
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37% of physicians nationwide are tied down by non-compete clauses. Hear Senator Warren’s urgent warning about how these anticompetitive practices could rob your community of essential healthcare providers. [VIEW FULL CLIP]
- Chris Van Hollen says it out loud: Non-compete agreements were designed to protect company secrets, but now they trap 30% of workers earning under $13/hour. These agreements have become a tool for exploitation, not protection. [VIEW FULL CLIP]
Accountable.US is a nonpartisan watchdog group that exposes corruption across all levels of government.
