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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 WarrenWarren has expressed interest in being Biden's Treasury secretary: report The Democrats' 50 state strategy never reached rural America What a Biden administration should look like MORE (D-Mass.) and Amy KlobucharAmy KlobucharFederal appeals court rules Minnesota must separate late-arriving mail-in ballots Trump announces intention to nominate two individuals to serve as FEC members Start focusing on veterans' health before they enlist 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: Dow falls more than 900 points amid fears of new COVID-19 restrictions | Democrats press Trump Org. about president's Chinese bank account | Boeing plans thousands of additional job cuts Democrats press Trump Organization about president's Chinese bank account Brown says Biden's first moves as president should be COVID relief, voting rights MORE (D-Ohio), Ben CardinBenjamin (Ben) Louis CardinBipartisan group of senators call on Trump to sanction Russia over Navalny poisoning Pelosi hopeful COVID-19 relief talks resume 'soon' Congress must finish work on popular conservation bill before time runs out MORE (D-Md.) and Ed MarkeyEdward (Ed) John MarkeyTech CEOs clash with lawmakers in contentious hearing OVERNIGHT ENERGY: Trump strips protections for Tongass forest, opening it to logging | Interior 'propaganda' video and tweets may violate ethics laws, experts say | Democrats see Green New Deal yielding gains despite GOP attacks Democrats see Green New Deal yielding gains despite GOP attacks 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 SandersTlaib, Ocasio-Cortez offer bill to create national public banking system Cutting defense spending by 10 percent would debilitate America's military The Hill's 12:30 Report - Presented by Facebook - Election night could be a bit messy MORE (I-Vt.), Kamala HarrisKamala HarrisThere's still time to put Kamala Harris front and center Hillicon Valley: Biden campaign slams Facebook after thousands of ads blocked | Majority of voters in three swing states saw ads on social media questioning election validity: poll | Harris more often the target of online misinformation The Hill's 12:30 Report - Presented by Facebook - Pollsters stir debate over Trump numbers MORE (D-Calif) and Cory BookerCory Anthony BookerDemocratic senators unveil bill to ban discrimination in financial services industry Obama endorses Espy in Mississippi Senate race Durbin says he will run for No. 2 spot if Dems win Senate majority 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.