FOR IMMEDIATE RELEASE: January 5, 2023

CONTACT: Sandeep Vaheesan, vaheesan@openmarketsinstitute.org 

WASHINGTON- Open Markets Institute Legal Director Sandeep Vaheesan released the following statement applauding the FTC’s decision to propose a ban on non-compete clauses and functionally similar contracts for all workers.

In March 2019, the Open Markets Institute spearheaded a petition joined by Public Citizen, the AFL-CIO, SEIU, and many other labor and public interest groups, as well as more than 40 scholars, demanding the FTC enact a regulatory prohibition on non-compete contracts. Since that time, Open Markets and its allies have repeatedly called for the FTC to act.

“The FTC’s proposal to ban non-compete clauses is an enormous boon to workers all across the United States,” said Open Markets Legal Director Sandeep Vaheesan. “For far too long, employers have used non-compete clauses to unfairly restrict job market mobility for millions of workers and, as a result, depressed wages, reduced the creation of new businesses, and prevented workers from leaving abusive and discriminatory workplaces. Banning non-competes will increase worker power and mobility and result in a more dynamic economy that benefits all. We believe the public comments on the proposal, notably from workers and unions and advocates that represent them, will only bolster the FTC’s evidentiary case for enacting a full ban in its final rule.”

Employers across a range of industries require workers to accept a non-compete clause as a condition of employment. These unjust contracts deprive tens of millions of workers of the freedom to accept a job, take new opportunities, or to start a business in the same line of work or industry after they leave their current job. Amazon, for example, previously prohibited warehouse workers from working for a competitor of the retail giant anywhere in the country for 18 months after leaving. Non-competes currently bind workers in a variety of industries and vocations, including camp counselors, engineers, fast food workers, hair stylists, physicians, yoga instructors, and others.

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The Open Markets Institute is a team of journalists, researchers, lawyers, economists, and advocates working together to expose and reverse the stranglehold that corporate monopolies have on our country.  Learn more at www.openmarketsinstitute.org.