July 28, 2020

Bloomberg Law: Democratic Senators Urge Pandemic Crackdown on Noncompete Pacts

Two Democratic senators want the Federal Trade Commission to take emergency action to limit employers’ enforcement of noncompete agreements during and after the Covid-19 pandemic, saying the public health emergency has “exacerbated” problems with such arrangements.

Sens. Chris Murphy (D-Conn.) and Elizabeth Warren (D-Mass.) also faulted the FTC for not advancing a rulemaking following a January workshop held to consider a possible rule restricting use of noncompete agreements, which hinder a worker’s ability to find employment in a particular industry or geographic market.

Allowing enforcement of such contracts to continue during the pandemic creates additional challenges for workers in a labor market where between 20 million and 30 million people have filed for unemployment, the senators said in a letter to the agency.


Read the full article on the Bloomberg Law website here.

By:  Jaclyn Diaz
Source: Bloomberg Law