In US employment, ‘freedom to move to a competitor’, confidentiality lifted, ‘employment expansion and wage increase’

In US employment, ‘freedom to move to a competitor’, confidentiality lifted, ‘employment expansion and wage increase’

As restrictions on US workers moving to competing companies for a certain period of time were lifted, trade secrets were lifted, guaranteeing freedom for new businesses and expanding the scope for wage increases.
On the 23rd, the U.S. Federal Trade Commission (FTC) invalidated the 'restriction on employment in the same industry for a certain period of time' required by companies in the 'non-compete rule' and allowed competition through 'guaranteeing freedom to pursue new jobs, start new businesses, and enter the market with new ideas'. Announced new employment guarantee rules guaranteeing company attendance.
“The FTC’s final rule prohibiting noncompetes will ensure Americans’ freedom to pursue new careers, start new businesses, and bring new ideas to market,” FTC Chair Lina M. Khan said in a statement today. “This decision is expected to create 8,500 startups within a year and increase worker wages by up to $488 billion over the next 10 years,” he said.
The new rule, led by three Democratic members and passed with opposition from two Republican members, no longer allows employers to prevent employees from moving to competing companies, and ensures competition between companies by protecting trade secrets and trade secrets. Restrictions on ‘confidential information’ were lifted.
U.S. companies have historically relied on 'non-compete agreements' that prevent workers from leaving for competitors for a certain period of time, but this time, the FTC announced that approximately 30 million American workers in various occupations, including TV news producers, hairdressers, corporate executives, and computer engineers On this day, it was announced that measures to 'invalidate the non-compete agreement' would be taken against .
The FTC's decision today requires companies to compete harder for talent and publicly demonstrates a strategy of supporting “wage increases.”
The New York Times said, “The FTC said this sweeping measure would help create jobs, raise wages and promote competition among companies,” adding, “On the other hand, companies that say the measure must protect their trade secrets and confidential information “It is almost certain that they will challenge this in court,” he said.
Regarding the FTC announcement, President Biden said, “ Our administration announced two big new steps to provide better treatment for American workers.” It is cracking down on contracts used to prevent workers from switching jobs even if they offer better pay or better working conditions. “Workers should have the right to choose who they want to work for,” he told X on the 24th.
President Biden continued, “Second, we are saying that there is a right to overtime pay for the millions of workers who make less than $58,656. “If you work extra hours, you are entitled to extra pay,” he said.
“The Federal Trade Commission’s decision to ban employer non-compete agreements across the economy is not only illegal, it is a shameless power grab that will undermine the ability of American businesses to remain competitive,” the U.S. Chamber of Commerce said in a statement. “We will file a lawsuit against them to stop this unnecessary and illegal rule and let other agencies know that these excessive measures will not be tolerated,” he said on the 24th.
The AFL-CIO and the Service Employees International Union (SEIU), the largest union organizations in the United States, supported the FTC's action.
FTC regulations become law and become effective 120 days after publication in the Federal Register. However, legal issues may delay or block changes.
The rule allows non-compete agreements affecting senior executives to remain in effect and prohibits employers from imposing new non-compete agreements on any employee, including executives.
The FTC's new rules define executives in "policy-making positions" in their executive regulations as having an annual minimum income of $151,164.
New U.S. employment rules hereby mandate that employers notify part-time employees bound by existing non-compete clauses that they can no longer enforce a “non-disclosure agreement.”