EIG Media Contact: Reuben Francis | [email protected]
Washington, D.C. – The Economic Innovation Group (EIG) released the following statement in response to the recent court ruling against the Federal Trade Commission’s (FTC) rule banning the use of noncompete agreements.
“The court’s decision should come as a surprise to nobody,” said John Lettieri, President and CEO of the Economic Innovation Group. “American workers and employers deserve the certainty that only Congressional action—not agency rulemaking—can provide. Whichever candidate is sworn in as President next year should work with Congress to enact sensible noncompete reform, such as the bipartisan Workforce Mobility Act.”
The Workforce Mobility Act, sponsored by Senators Chris Murphy (D-CT) and Todd Young (R-IN), and Representative Scott Peters (D-CA) and former Representative Mike Gallagher (R-WI), would restrict the use of noncompete agreements except in cases of the dissolution of a partnership or sale of a business.
Nearly one in five American workers are bound by noncompete agreements, which prevents them from starting or joining competing businesses. Prior research has shown that these agreements stifle competition and hinder worker mobility, ultimately harming the broader economy. However, momentum for reform is growing, particularly in state legislatures across the country.
About the Economic Innovation Group (EIG)
The Economic Innovation Group (EIG) is a bipartisan public policy organization dedicated to forging a more dynamic and inclusive American economy. Headquartered in Washington, DC, EIG produces nationally-recognized research and works with policymakers to develop ideas that empower workers, entrepreneurs, and communities.
