The Federal Trade Commission prohibits employers from using the “Non-Compete Rule”
One in five working Americans signs a pledge not to take a job with a competitor. And sometimes even several years after dismissal.
The Federal Trade Commission has taken on US employers who bind workers to a commitment to be loyal to the company until the end. The Commission proposed prohibiting employers from including a “non-compete clause” in their contracts. The Liberal Economic Policy Institute, based on a study, stated that such an agreement was signed with 65 million people. The study also found that one in four Americans are bound by the promise in low-wage jobs, up to $13 an hour. The Federal Trade Commission saw this as a violation of laws and proposed prohibiting employers from retaining employees.
The non-compete rule is applied even in states where it has been prohibited for 100 years, such as California.
Source: Telegram channel “Business in the USA”
