A new pro-worker rule faces better odds in the courts than its critics assume.
on workers who may not know the clauses are illegal in their state. And importantly, the proposed rule affirmatively states that “non-compete clauses increase racial and gender wage gaps by disproportionately reducing the wages of women and non-white workers.” The rule actively requires employers to rescind existing noncompete clauses and provide notice to their workers.
To understand why, it’s important to understand that while Congress passed laws to give the FTC significant rulemaking authority, the agency hasn’t ever really used it in an impactful way. By one estimate, the agency has onlyFor almost all its history, the FTC has been reticent—or unwilling—to use the broad authority granted to it by Congress in Section 5 of the FTC Act.
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