The Obama administration on Tuesday called on U.S. states to ban agreements prohibiting many workers from moving to their employers’ rivals, saying it would lead to a more competitive labor market and faster wage growth.
The administration said so-called non-compete agreements interfere with worker mobility and states should consider barring companies from requiring low-wage workers and other employees who are not privy to trade secrets or other special circumstances to sign them.
Vice President Joe Biden in a statement said he had heard from a teacher in Nebraska who was barred from taking a summer job selling pet food to earn extra money. Among others, Biden also mentioned a salesman in Connecticut who was laid off and forced to spend his retirement savings because he was prohibited from accepting other sales jobs. Read the full story here.
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