U.S. agency considering rule reining in non-compete agreements for workers

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The practice of requiring workers to sign an agreement barring them from quitting for a similar job elsewhere appears to have begun among white collar professions, like doctors and tech workers, and were aimed at protecting trade secrets and encouraging training of workers. They have since spread to low-wage jobs that require minimal training.

Commissioner Rebecca Slaughter, a Democrat on the FTC, said she had not prejudged a decision on a rule but seemed skeptical of such agreements. Any decision on a rule limiting corporate non-compete agreements would be made by the agency’s five commissioners, three Republicans and two Democrats.

 

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