EIG Media Contact: Reuben Francis | [email protected]
Washington, D.C. – The Economic Innovation Group (EIG) released the following statement in response to Washington State enacting legislation to restrict the use of noncompete agreements:
“Washington State’s action marks a significant step forward in restoring dynamism and opportunity in the labor market,” said John Lettieri, President and CEO of the Economic Innovation Group. “Noncompete agreements prevent workers from taking better jobs, limit their earning potential, and impede the formation of new businesses. By moving to curb their use, Washington is helping to unlock opportunities for workers while strengthening competition and innovation across its economy.”
Noncompete agreements directly bind nearly one in five American workers, restricting their ability to switch jobs or start competing businesses, but have a chilling effect throughout the labor market. A growing body of economic evidence finds that limiting noncompetes can raise wages, increase worker mobility, support entrepreneurship, and strengthen innovation.
Washington’s action makes it the fifth state to enact a blanket noncompete ban amid a growing wave of reform efforts from dozens of states 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.
