EIG Media Contact: Reuben Francis | [email protected]
Washington, D.C. – The Economic Innovation Group (EIG) welcomes the Federal Trade Commission’s (FTC) decision today to restrict the use of noncompete agreements and urges Congress to enact legislation to make that restriction permanent.
“EIG welcomes the FTC’s action on this critical issue and agrees that a broad ban on noncompete agreements is the right solution,” said John Lettieri, President and CEO of the Economic Innovation Group. “However, American workers and businesses deserve certainty that only legislation can provide. To that end, we urge the Biden Administration to work with Congress to pass the bipartisan Workforce Mobility Act and make a national noncompete ban the law of the land.”
The FTC’s final rule aligns with EIG’s longstanding call for a national ban on noncompete agreements. The rule prohibits new noncompete agreements while rendering most existing agreements unenforceable, with exceptions for those currently in effect for senior executives. The bipartisan 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), aligns closely with the scope of the FTC’s rule.
Empirical evidence shows that noncompetes are harmful to workers, firms, and the broader economy. Such agreements are pervasive, with one in five employees–or approximately 32 million Americans–currently bound by a noncompete. However, momentum has been building behind reform, including 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.
