Warren, Klobuchar call on FTC to curtail use of non-compete clauses

Warren, Klobuchar call on FTC to curtail use of non-compete clauses
© Stefani Reynolds

Sens. Elizabeth WarrenElizabeth Ann Warren Sanders condemns his supporters' 'ugly, personal attacks' against Warren The Hill's Campaign Report: Biden riding wave of momentum after stunning Super Tuesday Delegate battle ahead likely favors Biden MORE (D-Mass.) and Amy KlobucharAmy KlobucharBiden surge calms Democratic jitters Delegate battle ahead likely favors Biden How the Democratic candidates should talk to voters about Cuba MORE (D-Minn.) signed onto a letter calling for the Federal Trade Commission (FTC) to limit non-compete clauses for workers.

Warren and Klobuchar, two of more than a dozen Democratic presidential candidates, said the clauses hurt roughly 30 million workers by limiting their abilities to tack on additional work to supplement their income or find new employment in a similar field for a period of time after leaving a job. 

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“We write to urge the Federal Trade Commission to use its rulemaking authority, along with other tools, in order to combat the scourge of non-compete clauses rigging our economy against workers,” Warren and Klobuchar, along with four other Democrats, wrote. “Non-compete clauses harm employees by limiting their ability to find alternate work, which leaves them with little leverage to bargain for better wages or working conditions with their immediate employer.”

“The Federal Trade Commission has a duty to protect not only consumers, but also workers. Currently, workers are suffering serious anti-competitive harms from the proliferation of non-competes in the economy,” they added. “It is not enough that the Federal Trade Commission shares our concerns about these actions. It must act decisively to address them.” 

The letter, led by Sen. Richard Blumenthal (D-Conn.), requested the FTC respond within 30 days with any action it is taking to curtail the clause. Sens. Sherrod BrownSherrod Campbell BrownOn The Money: Stocks close with second day of steep losses | Dow falls over 800 points as coronavirus fears grow | Kudlow claims virus has been contained | US expects China to honor trade deal amid outbreak Hillicon Valley: Agencies play catch-up over TikTok security concerns | Senate Dems seek sanctions on Russia over new election meddling | Pentagon unveils AI principles Senate Democrats urge Trump administration to impose sanctions on Russia for election interference MORE (D-Ohio), Ben CardinBenjamin (Ben) Louis CardinSeniors, businesses grapple with landmark retirement law Schumer asks Justice Department to probe Grenell's consulting work Democrats worried about Trump's growing strength MORE (D-Md.) and Ed MarkeyEdward (Ed) John MarkeyMarkey questions Amazon on price gouging due to coronavirus Hillicon Valley: Democrats in talks to bridge surveillance divide | DHS confident in Super Tuesday election security | State pledges M cyber help to Ukraine | Facebook skipping SXSW amid coronavirus Markey presses facial recognition company over Middle Eastern marketing, potential child privacy violations MORE (D-Mass.) also signed the memo.

The message came partly in response to a petition signed by over 60 organizations and individuals for the FTC to ban non-compete clauses.

“Through non-compete clauses, employers deprive workers of the freedom to leave for greener employment pastures and to pursue entrepreneurial opportunities,” Open Markets Legal Director Sandeep Vaheesan, whose group signed the petition, said in a statement. “By restricting job market mobility for millions of workers, non-competes depress wages, reduce the creation of new businesses, and prevent workers from leaving unjust and toxic workplaces.” 

Warren and Klobuchar are running in a crowded Democratic primary field against other high-profile candidates like former Rep. Beto O’Rourke (D-Texas) and Sens. Bernie SandersBernie SandersRepublicans, rooting for Sanders, see Biden wins as setback Sanders says Biden winning African American support by 'running with his ties to Obama' Sanders condemns his supporters' 'ugly, personal attacks' against Warren MORE (I-Vt.), Kamala HarrisKamala Devi HarrisDemocratic presidential race comes into sharp focus Democratic candidates gear up for a dramatic Super Tuesday The Memo: Biden needs blowout SC win to reshape race MORE (D-Calif) and Cory BookerCory Anthony BookerThe Memo: Biden seeks revival in South Carolina Bloomberg campaign lobbied Yang for endorsement, possible VP offer: report Warren calls for changes to presidential pardon power, pledges to create clemency board MORE (D-N.J.). Nearly all the candidates are wary of drawing the ire of the party’s progressive flank, which favors increased workers’ rights.