EPISODE · Jan 31, 2023 · 22 MIN
The FTC wants to ban non-compete clauses. How much power do they really have?
from The Week in Philly from KYW Newsradio · host Audacy
It’s fairly common for a contract or work agreement to include a non-compete clause, saying the worker can’t go to a competing company for a certain amount of time after leaving their job. But that might not be the case for long - the Federal Trade Commission has put forth a proposal that would ban non-compete agreements. What would that mean for workers and for businesses? The FTC makes rules to prevent unfair competition, but they’re not laws - do they really have the power to make a ban this big? Natalie Pedersen, Associate Professor of Legal Studies at Drexel's LeBow College of Business, helps us explain what’s at stake here and how it could play out.
What this episode covers
It’s fairly common for a contract or work agreement to include a non-compete clause, saying the worker can’t go to a competing company for a certain amount of time after leaving their job. But that might not be the case for long - the Federal Trade Commission has put forth a proposal that would ban non-compete agreements. What would that mean for workers and for businesses? The FTC makes rules to prevent unfair competition, but they’re not laws - do they really have the power to make a ban this big? Natalie Pedersen, Associate Professor of Legal Studies at Drexel's LeBow College of Business, helps us explain what’s at stake here and how it could play out.
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The FTC wants to ban non-compete clauses. How much power do they really have?
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