January 6, 2023

Young, Colleagues Applaud FTC Proposed Rule to Ban Non-Compete Agreements Across Economy

WASHINGTON, D. C. – U.S. Senators Todd Young (R-Ind.), Chris Murphy (D-Conn.), Tim Kaine (D-Va.), and Kevin Cramer (R-N.D.) released the following statements on the Federal Trade Commission’s (FTC) proposed rule banning employers from imposing non-compete agreements on their employees. The FTC estimates that the new proposed rule could increase wages by nearly $300 billion per year and expand career opportunities for about 30 million Americans.

“Non-compete agreements restrict our workforce and stifle economic growth. This is why I have long fought to rein in their use, and I am pleased that the FTC is taking steps to address their overuse. In the final rule, I am hopeful that the FTC can strike the right balance to support workers while ensuring that our American employers can continue to thrive,” said Senator Young.

“The FTC’s proposed rule banning the use of non-competes is great news for workers and for maintaining our economy’s competitive edge. In recent years, we’ve seen an explosion of non-compete agreements across industries and income brackets that have depressed wages and stifled innovation. Senator Young and I applaud the FTC for taking this step, and I look forward to continuing our work in Congress to support American workers and entrepreneurs,” said Senator Murphy.

“Non-compete clauses suppress wages, hinder job mobility, and make it harder for growing businesses to hire talent. Curtailing their use is a commonsense step that’s good for workers and the economy,” said Senator Kaine.

“Restrictive non-compete agreements suppress economic growth, discourage innovation, and are barriers to market entry for entrepreneurs. Non-competes are neither pro-business nor pro-worker, and Americans deserve flexibility to freely pursue their careers. This is why North Dakota largely prohibited non-competes years ago. The FTC’s proposed rule follows our state’s leadership,” said Senator Cramer.

Last Congress, Young and Murphy introduced the Workforce Mobility Act, bipartisan legislation to limit the use of non-compete agreements that negatively impact American workers. U.S. Senator Kevin Cramer (R-N.D.) and U.S. Senator Tim Kaine (D-Va.) were original co-sponsors of the bill. In December 2021, Young and Murphy also led a letter to the FTC and Department of Justice (DOJ) Antitrust Division to restrict the use of non-compete clauses in employment contracts to promote worker mobility.