In 2014, Jimmy John’s, a sandwich shop, was caught asking its storefront sandwich-making employees to sign non-competes
Lina Khan, Chair of the Federal Trade Commission, is sworn in before a House Judiciary Committee hearing on Capitol Hill in Washington, on July 13, 2023.On Tuesday, the U.S. Federal Trade Commission voted to ban non-compete agreements, which limit employees from joining competitors after leaving their job.
Instead, the federal government is allowing non-compete agreements to spread in many markets dominated by just a few big players. Non-compete provisions are almost always imposed by employers at the outset of an employment relationship, in circumstances usually characterized by an inequality of bargaining power. Coupled with many employees’ lack of comprehension about the consequences of these provisions, this power dynamic poses serious concerns about worker vulnerability.
These disputes over enforceability also place unnecessary pressures on an already backlogged judicial system – one where the federal government shows little interest in addressing the
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