Working It

What the US non-compete ban could mean for workers

Apr 30, 2024

The podcast discusses the US non-compete ban affecting over 30mn workers, implications for low-wage employees, FTC ruling, legal challenges, and the necessity for fair employment agreements to safeguard worker rights.

11:15

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Quick takeaways

FTC's ban on non-compete agreements affects both high-paid professionals and low-wage employees, sparking legal challenges and industry concerns

Non-compete agreements highlight the need to balance legal safeguards and fair treatment of workers, prompting discussions on workplace abuse and employee retention

Deep dives

FTC Bans Non-Compete Agreements in the US

The Federal Trade Commission's decision to ban non-compete agreements in the US marks a significant shift in employment practices. These agreements, commonly used to restrict workers from joining competitors, have been found to impact not only high-paid professionals but also millions of low-wage employees in various sectors like hospitality and healthcare. The FTC's move has been praised by workers' rights advocates for removing what they see as a hindrance to economic growth, while industry groups express concerns about reduced competitiveness for American firms.

Introduction

3min

Examining the Impact of Non-Compete Agreements on Low-Wage Workers

4min

Discussion on the Impact of US Non-Compete Ban on Worker Rights and Workplace Dynamics

3min

More than 30mn Americans are subject to non-compete agreements, which temporarily bar them from working for rival companies if they leave their jobs. These clauses were meant to protect trade secrets and client relationships at banks, tech companies, and similarly flashy organisations – but they now affect tens of millions of Americans, including in low-paid jobs. The US Federal Trade Commission last week voted to ban non-compete agreements – but will its decision stick? Isabel Berwick speaks to Amelia Pollard and Anjli Raval, who have covered the issue for the FT, to find out.

Want more? Free links:

Millions of workers are caught in a ‘non-compete’ trap

Employee non-compete agreements barred by US regulator

Ban on non-compete agreements sends shockwave across Wall Street

Presented by Isabel Berwick, produced by Mischa Frankl-Duval, mixed by Simon Panayi. The executive producer is Manuela Saragosa. Cheryl Brumley is the FT’s global head of audio.

Read a transcript of this episode on FT.com

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