Labor Groups Petition U.S. FTC to Ban Non-Compete Clauses (1)

The U.S. Federal Trade Commission finds itself under increasing pressure to ban non-compete clauses, with unions, advocacy groups and politicians complaining that the agreements hobble workers’ rights and fair competition.

The AFL-CIO, the Service Employees International Union, and Public Citizen, among other organizations, are urging the agency—in a petition—to issue a new rule prohibiting employers across industries from requiring that their workers sign agreements limiting them from going to work for a competitor.

The petition, which was spearheaded by the Washington-based anti-trust advocacy group Open Markets Institute, cites estimates that one out of every five U.S. workers—or about 30 million—is ...