The White House is set to release an executive order that gives workers the upper hand in a job market that is recovering from the wreckage of the COVID-19 pandemic.
The New York Times reported on Wednesday that the White House plans to release an executive order centered on competition policy, including restrictions on the use of noncompete agreements. People familiar with the order told the Times that one section contains several provisions aimed at increasing competition in the labor market.
A source familiar with the order confirmed the Times’ report to TPM on Wednesday. The source told TPM that the executive order can be “expected in the coming days.”
The order will suggest the Federal Trade Commission nix or restrict noncompete agreements — a business practice that employers have used to deter workers from quitting to trade up for a better job. Additionally, it encourages the FTC to ban “unnecessary” occupational licensing restrictions that pose obstacles for job seeking workers, especially across state lines.
The order also encourages the FTC and Justice Department to restrict employers from sharing information on worker pay — a tactic that may lead to collusion.
The executive order would direct antitrust regulators to take the effect of mergers on workers into account. Mergers potentially contribute to what is known as “monopsony,” which leaves workers with few options of where to work, and therefore gives them less leverage to negotiate higher wage or better benefits.
The Times noted that White House’s planned order is the most concerted effort in recent years of the federal government using its bully pulpit to give workers more leverage in the job market.
The order comes amid an economy in flux — job openings are on the rise alongside significant rates of workers quitting their jobs. The Bureau of Labor Statistics reported that while there were 9.3 million job openings in April, almost 4 million people, or 2.7 percent, had also quit their jobs that month. On Wednesday, the BLS reported little change in job openings and labor turnover in May, with 9.2 million job openings and a slight decrease in the quits rate to 2.5 percent.
Any non-compete agreement in an at-will employment state should be considered null and void.
So It’s OK for McDonald’s To Train A WoRker on frying Fries anD he CaN take thaT valuaBle skill oVer to Burger King? UncapiTaListic!
So nice to see an administration that actually considers the rights of the worker rather than slavishly uphold the “Job Creators”
I can see this being an anti-business screed for someone on the Right.
I have non-compete clauses with every project I do - prevents me from going to work directly for a client I’ve consulted for and usually lasts a year from my final payroll day on the project.
But, for the most part, I have had no interest in going to work for any of them.
I had one of these years ago, but it was written so broadly that you would be essentially unemployed for a year unless you were willing to move or work for MickeyD. They are seriously abused IMO.