US Senate News:
Source: United States Senator John Hickenlooper – Colorado
Final rule comes after Hickenlooper and Warren called on FTC to take action to curtail noncompetes
WASHINGTON – Today, U.S. Senators John Hickenlooper and Elizabeth Warren applauded the Federal Trade Commission’s (FTC) final rule to limit noncompete agreements and support workers and innovation. The final rule comes after Hickenlooper and Warren wrote to the FTC in September in support of the then-proposed rule.
“We should always be making it easier for Americans to work and start new businesses,” said Hickenlooper. “Noncompetes are anti-competitive, and by limiting them, we’ll promote American innovation, enable more start-ups, and allow workers to meet their full potential.”
“Banning noncompete agreements is life-changing for millions of Americans. The rule will allow workers to change jobs or start a new business, and it will boost wages, spur innovation, and lower health care costs. This action by the Biden administration and the FTC is a big win for workers and one I’ve long called for,” said Warren.
Noncompetes are a widespread and often exploitative practice that employers use to block an employee from working for a competing employer or starting a competing business, typically after a set period of time. Far too often, noncompetes stifle competition by blocking workers from pursuing better opportunities and preventing employers from hiring the best available talent. Noncompetes can also impede small business growth, prevent would-be entrepreneurs from jumpstarting new businesses, disproportionately impact low-wage workers, and depress wages nationwide.
An estimated one in five American workers across a variety of industries are subject to a noncompete as a condition of their employment, and the FTC estimates that the final rule will generate more than 8,500 additional new businesses.
This Congress, Hickenlooper chairs the Subcommittee on Consumer Protection, Product Safety, and Data Security under the Committee on Commerce, Science, and Transportation, which has direct jurisdiction over the FTC.
