FTC to Decide , Whether Noncompete Agreements , Should Be Banned.<br />After receiving over 26,000 public comments about the issue, the Federal Trade Commission is set to deliver its verdict on April 30, NPR reports. .<br />The commission said that if approved, the <br />final rule "would generally prevent most <br />employers from using noncompete clauses.".<br />The commission said that if approved, the <br />final rule "would generally prevent most <br />employers from using noncompete clauses.".<br />Approximately one in five Americans, spanning minimum wage workers to CEOs, are subject to noncompete agreements, the FTC estimates. .<br />The Biden administration says that these types of agreements hurt workers by decreasing wages.<br />The White House also argues that these <br />agreements harm the U.S. economy because entrepreneurship isn't allowed to freely flourish. .<br />FTC Chair Lina M. Khan issued a statement when <br />the proposed ban was initially introduced.<br />The freedom to change jobs is <br />core to economic liberty and to <br />a competitive, thriving economy, FTC Chair Lina M. Khan, via statement.<br />Noncompetes block workers from <br />freely switching jobs, depriving <br />them of higher wages and better <br />working conditions, and depriving <br />businesses of a talent pool that <br />they need to build and expand, FTC Chair Lina M. Khan, via statement.<br />Businesses argue that noncompete agreements are essential for safeguarding investments and proprietary information.<br />Those businesses also question whether <br />the agency has the power "to regulate <br />such agreements," NPR reports. .<br />If the FTC votes to issue a final rule, enforcement wouldn't occur for 180 days, <br />and legal challenges would likely ensue.
