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 Warren4 reasons why Trump can't be written off — yet Here are top contenders to be Biden's VP Kamala Harris to young Black women at conference: 'I want you to be ambitious' MORE (D-Mass.) and Amy KlobucharAmy KlobucharSenators press Postal Service over complaints of slow delivery GOP sparks backlash after excluding election funds from COVID-19 bill Hillicon Valley: Feds warn hackers targeting critical infrastructure | Twitter exploring subscription service | Bill would give DHS cyber agency subpoena power 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 BrownOvernight Defense: Guardsman to testify Lafayette Square clearing was 'unprovoked escalation' | Dems push for controversial Pentagon nominee to withdraw | Watchdog says Pentagon not considering climate change risks to contractors Democrats urge controversial Pentagon policy nominee to withdraw Chamber of Commerce, banking industry groups call on Senate to pass corporate diversity bill MORE (D-Ohio), Ben CardinBenjamin (Ben) Louis CardinCongress eyes tighter restrictions on next round of small business help Senate passes extension of application deadline for PPP small-business loans 1,700 troops will support Trump 'Salute to America' celebrations July 4: Pentagon MORE (D-Md.) and Ed MarkeyEdward (Ed) John MarkeyThe Hill's Campaign Report: Biden's latest plan on racial inequality The Boston Globe endorses Markey in primary against Kennedy OVERNIGHT ENERGY: EPA effort to boost uranium mining leaves green groups worried about water | DNC climate platform draft calls for net-zero emissions by 2050 | Duckworth introduces safety net bill for coal country 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 SandersGOP lawmaker: Democratic Party 'used to be more moderate' 4 reasons why Trump can't be written off — yet Progressives lost the battle for the Democratic Party's soul MORE (I-Vt.), Kamala HarrisKamala Devi HarrisThe 'pitcher of warm spit' — Veepstakes and the fate of Mike Pence Crump, attorney for George Floyd's family, endorses Harris for Biden VP pick Davis: My recommendation for vice president on Biden ticket MORE (D-Calif) and Cory BookerCory Anthony BookerOVERNIGHT ENERGY: EPA rule extends life of toxic coal ash ponds | Flint class action suit against Mich. officials can proceed, court rules | Senate Democrats introduce environmental justice bill Senate Democrats introduce environmental justice bill Overnight Defense: Guardsman to testify Lafayette Square clearing was 'unprovoked escalation' | Dems push for controversial Pentagon nominee to withdraw | Watchdog says Pentagon not considering climate change risks to contractors 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.