FTC to Vote on Banning Noncompete Agreements
Special Open Commission Meeting to be Held April 16, 2024
By Redaktion (staff) | April 14, 2024
The Federal Trade Commission (FTC) will hold a special Open Commission Meeting on Tuesday, April 16, 2024, to vote on a proposed rule that would ban noncompete agreements. The rule, if finalized, would prohibit employers from imposing noncompete clauses on their employees.
FTC Chair Lina M. Khan announced the meeting in a statement on Friday. "Non-compete clauses are a relic of the past that suppresses wages, stifle innovation, and prevent workers from freely exercising their talents in the marketplace," Khan said. "The FTC's proposed rule would put an end to these harmful practices and restore competition to the labor market."
The proposed rule has been met with mixed reactions from business groups and labor unions. The Chamber of Commerce, the nation's largest business lobby, has said it plans to sue over the rule as soon as it is finalized.
Labor unions, on the other hand, have praised the proposed rule. The AFL-CIO, the largest labor federation in the United States, has said that the rule would "protect workers' rights to earn a fair wage and improve their job prospects."
The FTC's vote on the proposed rule is expected to be close. The commission is composed of five commissioners, three Democrats and two Republicans. If the rule is approved by a majority of the commissioners, it will be published in the Federal Register and will become effective 60 days later.
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