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 WarrenSaagar Enjeti says Buttigieg's release of McKinsey client list shows he 'caved to public pressure' On The Money: Lawmakers strike spending deal | US, China reach limited trade deal ahead of tariff deadline | Lighthizer fails to quell GOP angst over new NAFTA Bill Weld: As many as six GOP senators privately support convicting Trump MORE (D-Mass.) and Amy KlobucharAmy Jean KlobucharSenate gears up for battle over witnesses in impeachment trial Booker says he will not make December debate stage Yang: 2020 rivals in Senate should be able to campaign amid impeachment 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 BrownTrump trade deal likely to sow division in Democratic presidential field On The Money: Pelosi, Trump tout deal on new NAFTA | McConnell says no trade vote until impeachment trial wraps up | Lawmakers push spending deadline to Thursday Pelosi announces support for new Trump NAFTA deal MORE (D-Ohio), Ben CardinBenjamin (Ben) Louis CardinDemocrats worried by Jeremy Corbyn's UK rise amid anti-Semitism The Secure Act makes critical reforms to our retirement system — let's pass it this year Lawmakers honor JFK on 56th anniversary of his death MORE (D-Md.) and Ed MarkeyEdward (Ed) John MarkeyUS must act as journalists continue to be jailed in record numbers Warren proposes 'Blue New Deal' to protect oceans There's a lot to like about the Senate privacy bill, if it's not watered down 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 SandersSaagar Enjeti says Buttigieg's release of McKinsey client list shows he 'caved to public pressure' Sanders endorses Young Turks founder Cenk Uygur for Katie Hill's former House seat Biden hires Clinton, O'Rourke alum as campaign's digital director MORE (I-Vt.), Kamala HarrisKamala Devi HarrisOvernight Health Care — Presented by That's Medicaid — House passes sweeping Pelosi bill to lower drug prices | Senate confirms Trump FDA pick | Trump officials approve Medicaid work requirements in South Carolina Sanders endorses Young Turks founder Cenk Uygur for Katie Hill's former House seat Kamala Harris dropped out, but let's keep her mental health plan alive MORE (D-Calif) and Cory BookerCory Anthony BookerTrump neck and neck with top 2020 Democrats in Wisconsin: poll Booker says he will not make December debate stage White House makes push for paid family leave and child care reform 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.