Meanwhile, NOT on Mainstream Media.....
Something big is happening in the labor markets - and you can make your opinions known to the people who are changing them....
While the media keeps pumping out “news” about Harry and Megan and the latest round of voting in the House speaker elections, another government agency made a move that matters. Those of us who need to know what the regulations really say vs some journalists’ opinion about them go to the source. The process of making new rules isn’t as simple as publishing yet another Executive Order. Round 1 of making changes official involves sending a trial balloon out into the real world, AFTER lot of behind the scenes work and lining up support. This first public step to making a rules change by an agency of unelected officials is called a “Notice of Proposed Rulemaking” or NOPR for short.
This week, the Federal Trade Commission (FTC) has come out swinging against non-compete employment agreements. The FTC is familiar to the oil and gas industry, mostly because of the Hart Scott Rodino anti-trust reviews that are required in large M&A deals. These regs will impact all industries and millions of people at all levels of organizations who have signed contracts that place restrictions on their ability to work for competitors. They also impact the employers who want these limits on their work forces.
The actual Notice is located at https://www.ftc.gov/legal-library/browse/federal-register-notices/non-compete-clause-rulemaking. The purpose of the proposed rule is summed up as “The Federal Trade Commission proposes preventing employers from entering into non-compete clauses with workers and requiring employers to rescind existing non-compete clauses. The Commission estimates that the proposed rule would increase American workers’ earnings between $250 billion and $296 billion per year. The Commission is asking for the public’s opinion on its proposal to declare that non-compete clauses are an unfair method of competition, and on the possible alternatives to this rule that the Commission has proposed. “
It’s important to note that these proposed rules DON’T apply to situations where a business is being sold and the seller is asked to sign a non-compete to protect the buyer. But, they do apply to pretty much all “workers”. Per the Notice, the term “workers” includes, without limitation, an employee, individual classified as an independent contractor, extern, intern, volunteer, apprentice, or sole proprietor who provides a service to a client or customer.
According to anti-trust advocate Matt Stoller’s BIG newsletter (see below), 3 large companies have already settled with the FTC by agreeing to eliminate non-competes, and the business community is recognizing that change is on the way. Ironically, the legal profession, some of whose members prosecute people who barely make minimum wage for non-compete violations, considers them to be “unethical”. Rules for thee and not for me, here we go again.
And this time you can act on something that very likely affects you or someone you know. Regardless of your position on the issue, you can make comments on the rules. The 60 day comment window will be opening soon. Be sure to check back on the FTC site to see how to submit yours.