Economic Liberties Launches New Site to Organize Support for FTC’s Proposed Ban on Noncompetes
Washington, D.C. — The American Economic Liberties Project today launched BanNoncompetes.org, a new website that provides a clear and easy way for the millions of workers, small business owners, and entrepreneurs affected by noncompete agreements to voice their support of the Federal Trade Commission’s proposed ban.
“Millions of workers, future new business owners, everyday consumers, and the American economy overall will be better off because of the FTC’s proposed ban on noncompetes,” said Sarah Miller, Executive Director of the American Economic Liberties Project. “For too long, these coercive agreements have unfairly denied millions of working people the freedom to change jobs, negotiate for better pay, and start new businesses. It’s crucial that the FTC hear their stories as they finalize this precedent-setting rule — and this is an easy way to make that happen.”
The new website, BanNoncompetes.org, provides an easy-to-use form for visitors to voice their support of the FTC’s proposed rule. Already, the agency has received over 9,000 comments from workers, business owners, and consumers across the economy, almost all of which are in support of the proposal.
Noncompete agreements limit where employees can work after their tenure at a company and they are widely abused. Evidence suggests at least 18% of the workforce are subject to noncompete agreements upon signing a job offer. As President Biden has noted, “these aren’t just high-paid executives or scientists who hold secret formulas for Coca-Cola so Pepsi can’t get their hands on it…They’re construction workers, hotel workers, disproportionately women and women of color.” Noncompetes have been shown to restrict wages and dampen entrepreneurship, reducing new-firm entry by as much as 18 percent. In fact, workers in states and industries with more noncompetes suffer from lower wages, less job mobility, and lower levels of job satisfaction, even when they themselves aren’t bound by such agreements. The FTC estimates banning noncompete agreements could increase wages by nearly $300 billion a year across the economy.
Learn more at BanNoncompetes.org.
Learn more about Economic Liberties here.