Sarah Block
Tue, 11/16/2021
On July 9, 2021, President Biden signed an Executive Order on Promoting Competition in the Economy, which directs federal agencies including the Federal Trade Commission (FTC) to take steps towards regulating the use of abusive tactics which restrict or limit economic competition. Focusing on the rights of workers, the Executive Order explains that “[c]onsolidation has increased the power of corporate employers, making it harder for workers to bargain for higher wages and better work conditions. Powerful companies require workers to sign non-compete agreements that restrict their ability to change jobs. And, while many occupational licenses are critical to increasing wages for workers and especially workers of color, some overly restrictive occupational licensing requirements can impede workers’ ability to find jobs and to move between States.” As such, the Order requires as follows: “To address agreements that may unduly limit workers’ ability to change jobs, the Chair of the FTC is encouraged to consider working with the rest of the Commission to exercise the FTC’s statutory rulemaking authority under the Federal Trade Commission Act to curtail the unfair use of non-compete clauses and other clauses or agreements that may unfairly limit worker mobility.”
The FTC, in conjunction with the Department of Justice’s Antitrust Division, is finally taking its first steps to comply with the Executive Order and towards regulating and restricting the use of abusive non-compete agreements at the federal level. The Agencies will hold a public, virtual workshop on December 6-7, 2021 to discuss, among other things, “efforts to promote competitive labor markets and worker mobility” and the “increased use of restrictive contractual clauses in labor agreements, including non-compete and non-disclosure agreements.” The workshop will be accessible via live webcast on the FTC’s website at www.ftc.gov, and a recording of the program will also be made available.
While this virtual workshop is a significant step towards regulating the increased use of restrictive non-compete agreements, the use of such agreements is only one of the ways that employers are able to take advantage of workers and curtail their bargaining power. To learn more about your workplace rights, please visit the “Resources” section of our website. If you believe you have been subjected to unlawful working conditions, please do not hesitate to reach out to MSE at https://www.mselaborlaw.com/contact.
