Wednesday urging the Federal Trade Commission to immediately begin working on a rule to prohibit the use of non-compete clauses in employment contracts, arguing that such agreements disempower tens of millions of workers.
"These one-sided contracts can also unfairly restrain competition in downstream markets by allowing dominant firms to hold on to specialized workers—think of monopolistic hospitals and surgeons," the groups wrote."Instead of retaining workers through coercive non-compete clauses, employers should maintain a loyal workforce by offering good wages, regular raises and promotions, and fair treatment.
The FTC has made clear it is contemplating action, but time is running short. It is vital that the FTC begin the rulemaking process to signal to the public, courts, and corporate America that it is committed to fair competition in the labor market. Additionally, further delay in issuing an NPRM [notice of proposed rulemaking] may result in legal jeopardy.