Attorneys general come out against employee noncompete agreements

Attorneys general from 17 states and the District of Columbia called for the Federal Trade Commission to consider prohibiting employee noncompete, non-solicitation and no-poach agreements.


At a minimum, they urged the FTC to consider bans on intra-franchise no-poach agreements, noncompete agreements for low-wage workers and a ban on noncompetes involving “multi-sided platforms” such as human cloud platforms.


The attorneys general made their case in a letter published on Monday.
“It is important in a constantly changing economy for workers to be able to advance their careers, develop professionally, and seek better compensation when there are opportunities to do so,” Maine Attorney General Aaron Frey said in a statement. “Noncompete clauses and no-poach contract agreements are frequently used against workers to depress wages and limit mobility.”

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