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 WarrenDemocrats confront 'Rubik's cube on steroids' The Trojan Horse of protectionism Federal Reserve officials' stock trading sparks ethics review MORE (D-Mass.) and Amy KlobucharAmy KlobucharThis week: Democrats face mounting headaches Klobuchar: 'It is evil to make it deliberately hard for people to vote' Democrats push to shield election workers from violent threats   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. 

ADVERTISEMENT

“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 BrownCentrist state lawmaker enters Ohio GOP Senate primary The Trojan Horse of protectionism Advocates call on top Democrats for 0B in housing investments MORE (D-Ohio), Ben CardinBenjamin (Ben) Louis CardinOvernight Defense & National Security: War ends, but finger pointing continues Harris presides over Senate passage of bill assisting Americans fleeing Afghanistan Senate panel votes to repeal Iraq war authorizations MORE (D-Md.) and Ed MarkeyEd MarkeyOvernight Energy & Environment — Presented by Climate Power — Senate Democrats ding Biden energy proposal Six Democrats blast Energy Department's uranium reserve pitch Facebook draws lawmaker scrutiny over Instagram's impact on teens 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 SandersPelosi says House members would not vote on spending bill topline higher than Senate's Groups push lawmakers to use defense bill to end support for Saudis in Yemen civil war Congress must address the looming debt crisis MORE (I-Vt.), Kamala HarrisKamala HarrisCIA chief team member reported Havana syndrome symptoms during trip to India: report Harris booked for first in-studio talk show appearance as VP on 'The View' Republicans caught in California's recall trap MORE (D-Calif) and Cory BookerCory BookerDOJ announces agencywide limits on chokeholds and no-knock entries Fighting poverty, the Biden way Top Senate Democrats urge Biden to take immediate action on home confinement program 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.