Attorneys General Push Back on Non-Competes
A coalition of attorneys general from 16 states, the District of Columbia and Puerto Rico again called on the Federal Trade Commission to stop the excessive use of noncompete agreements in the workplace. This is the third request since July 2019. Nearly 25% of US workers are covered by non-competes that limits employees from taking a new job or starting their business in the same industry within a geographic area for a certain period of time after leaving their current position, and 53% of those are low-wage workers. Justifications for such agreements — such as protecting trade secrets and ensuring return on investment in training — are not persuasive, particularly in regard to low-wage workers, the attorneys general argue. Noncompete agreements are already unenforceable in California.
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