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March 24, 2023

Should the FTC Ban Non-compete Clauses?

This year, the Federal Trade Commission decided shake up the labor market, proposing to ban non-compete clauses for the tens of millions of workers they affect. The clauses are essentially contracts between employers and employees that prohibit the former from competing with the business after the employment has ended. As many as 30% of all U.S. private sector workers have signed such agreements, which actually find their roots all the way back in 15th century England. Those who defend such clauses say employers need these contracts to protect their investments in training workers, not to mention safeguarding their trade secrets. The contracts, they say, represent not only a fair exchange, but also serve as an important fortification for businesses within the broader economy. The FTC, they say, is overextending. But opponents argue that such contracts prevent workers from starting their own businesses, locking them into undercompensated positions, and depress labor mobility and wage growth, while contributing to race and gender gaps. It is in this context that we debate the following question: Should the FTC Ban Non-compete Clauses? 

Breakdown

Undecided
0% - Swung from the Against Side
0% - Remained Undecided
0% - Swung from the For Side
Against the Motion
0% - Remained on the Against Side
0% - Swung from the For Side
0% - Swung from Undecided
For the Motion
0% - Swung from the Against Side
0% - Remained on the For Side
0% - Swung from Undecided

ABOUT THE DEBATERS
For The Motion
Heidi Shierholz
Heidi Shierholz - Economic Policy Institute President and former Chief Economist to the U.S. Secretary of Labor.
Heidi Shierholz served the Obama administration as chief economist at t... Read bio
Against The Motion
Neil Bradley
Neil Bradley - Executive Vice President, Chief Policy Officer, and Head of Strategic Advocacy, U.S. Chamber of Commerce
Read bio