FTC Enacts Nationwide Ban on Non-Compete Agreements
Landmark Decision to Boost Wages and Benefits
Breaking News: FTC Moves to Protect Workers' Rights
In a landmark decision, the Federal Trade Commission (FTC) has enacted a nationwide ban on new non-compete agreements, effective Tuesday, April 23, 2024. This groundbreaking move is expected to significantly boost wages and benefits for millions of American workers.
According to FTC Chair Lina M. Khan, the ban will impact an estimated 99% of workers who are not considered senior executives. Under the new rule, senior executives are defined as individuals earning more than a specific threshold, which will be determined in the final rule.
The FTC estimates that its ban could potentially increase wages and benefits by up to $488 billion over a decade. The agency has argued that non-compete agreements unfairly restrict workers' ability to seek better opportunities, suppress wages, and stifle innovation.
This latest move by the Biden administration aligns with its efforts to promote economic fairness and worker empowerment. The FTC's nationwide ban on non-compete agreements is a significant step towards creating a more equitable and competitive labor market in the United States.
Stay tuned for updates as the FTC releases the final rule and provides further details on the implementation of the ban.
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