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Biden had previously suggested that non-compete agreements stifle innovation and keep people unemployed.
President Joe Biden is preparing an executive order that will direct the Federal Trade Commission to curb the widespread use of non-compete agreements and agreements for workers.
“Around half of private sector companies require at least some employees to sign a non-compete agreement that affects over 30 million people. This affects construction workers, hotel workers, many blue-collar jobs, not just high-level executives. He believes that if someone offers you a better job, you should be able to accept these. It makes sense, “White House press secretary Jen Psaki said in a press release.
The anticipated order, according to CNBC, will be part of a wider range of executive action, all of which are aimed at increasing competition in the markets.
According to CNBC, the first order is set to be signed sometime in the coming days. This means that the “campaign promise of the president to promote competition in the labor markets” is kept.
Biden, notes The Hill, spoke out against non-compete agreements and other similar anti-competitive agreements during his tenure as Vice President of the United States under Barack Obama.
Man signs contract; Image by Cytonn Photography, via Unsplash.com.
“We have the most dynamic and productive workers in the world, but they cannot reach their true potential unless they have the freedom to negotiate higher wages with a new company or find another job after they are laid off,” said Biden said in 2016.
In 2020, Biden said that non-compete agreements and similar agreements “hamper the ability of workers to seek higher wages, better benefits and working conditions by switching employers”.
In addition to restricting the use of non-compete agreements, Biden will also urge the Federal Trade Commission to ban “unnecessary” licensing requirements and restrictions.
“While licensing can address important health and safety concerns, unnecessary or overly burdensome licensing can exclude people from jobs,” said Psaki. This applies in particular to military families, over a third of whom work in an area that requires a license and is subjected to military-led relocations every year. “
CNBC notes that Biden is also considering ways to prevent employers from disclosing workers ‘wage information in a way that negatively impacts workers’ prospects of moving to better-paying jobs.
That order, The Hill adds, would encourage the Federal Trade Commission and the Department of Justice to strengthen antitrust guidelines and prevent employers from working together to cut wages in any particular area or industry.
According to The Hill, the current guidelines do not prohibit or restrict the ways in which employers share information with one another.
“The president believes that in a healthy, competitive economy employers must compete for workers and competition between employers gives workers more opportunities,” an insider source told The Hill.
swell
Biden is preparing the order to restrict the non-compete clause for employees and to make it easier to change jobs
Biden issues an implementing regulation to restrict non-compete obligations
