December 2, 2019
LANSING – Michigan Attorney General Dana Nessel and 18 other Attorneys General submitted a letter to the Federal Trade Commission late last month to encourage the commission to limit the use of abusive non-compete clauses in employment contracts. These clauses continue to negatively impact low-income laborers while limiting job mobility and opportunities for advancement for all affected laborers.
"Nearly 12 percent of all workers with an annual income of $40,000 or less and no college degree are bound by a non-compete clause which limits their professional growth and fosters an anticompetitive approach to business," said Nessel. "We are calling on the FTC to do the right thing and take action on these clauses that have negatively impacted Michigan's workforce and unfairly burdened workers with little to no bargaining power."
Non-compete clauses in employment contracts prevent workers in many industries from moving from one business to another, or from starting their own business. Due to a non-compete agreement, for example, a barista – employed by a big chain coffee shop – could be barred from leaving to work at a local artisan shop where the schedule and/or management is better.
More on Michimich.com
- Michigan: Lane closures for Portage Lake Lift Bridge inspection set for June 10
- Michigan Issues Payments to Utilities for Low-income Customers to Help Them Keep Their Energy Services Connected During COVID-19
- Governor Whitmer Rescinds Safer at Home Order, Moves Michigan to Phase Four of the MI Safe Start Plan
- Michigan: Gov. Whitmer Calls for Unity Following President Trump's Call for Governors to 'Dominate' Protesters
- Pomegranate Pictures Attaches Hollywood Vet Sam Sako
An estimated one in every five workers — 30 million Americans — are currently restricted by non-compete clauses. Employers use these clauses instead of less harmful ways to protect their interests such as nondisclosure agreements, better compensation and benefits for employees or simply creating a workplace environment where workers want to stay.
In their letter, the Attorneys General assert that by taking action and using its rulemaking authority, the FTC would curb a pervasive, non-competitive practice and encourage all employers to retain workers by becoming better places to work—instead of using scare tactics.
Nessel joins the Attorneys General of California, Delaware, the District of Columbia, Illinois, Iowa, Maine, Maryland, Massachusetts, Minnesota, New Mexico, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, Washington, and Wisconsin in submitting these comments.
A copy of the letter is available here.
Latest on Michimich.com
- Los Angeles Based, 8th Floor LLC & ChildFaceMask.com Give Back to the Community While Protecting Children from COVID-19, Viruses, Allergies, & more
- Michigan: Rumble strip installation on I-75 starts tomorrow in northern Oakland County
- New Manufacturers' Resource: Dynamic Improvement Group Works to Boost Factory Efficiencies
- OCI Announces Appointment of Dr. Luke Matranga, Former President of Academy of General Dentistry, to OCI Dental Advisory Board
- Limitless Herbal Ltd Closes on Multi-Million Dollar CBD Deal
- ASCEND 2020 Atlanta Alumni pivot, to create Joint Venture RTW (Return to Work) Solutions Group to provide COVID-19 Business Services
- Little Caesars Popular Crazy Bread® Gets Gooey, Melty, Cheesy Spin-Off
- Real Estate Loans Are Closing During Global Pandemic. Just Ask Rickey Biddle of Philadelphia
- Michigan: Northbound M-39 service drive and ramps closing at US-12 for three weeks for bridge work
- Michigan: Northbound M-24 closing at Drahner Road as work begins in downtown Oxford in northern Oakland County
- Michigan: Secretary Benson: Don't miss June 1 deadline to apply for the Independent Citizens Redistricting Commission
- Michigan: Big Beaver Road to close under I-75 Monday night in Oakland County for new bridge deck concrete pour
- MI Symptoms Web Application Helps Michiganders Track Symptoms; Informs Reopening Strategy
- Michigan regional jobless rates surge in April with COVID-19 pandemic
- Michigan: Lawmakers Sponsor Upcoming Auto Insurance Town Halls
- STARK Industries, LLC Awarded NASA JPL - VITAL Ventilator Manufacturing License to Combat the Global COVID-19 Crisis
- Proposed 2020-21 Sterling Heights Budget Funds Critical Needs with No Tax Increase
- Evolve IP Offers Rapid Deployment of Desktop as a Service to Ingram Micro Partners
- Michigan: AG Nessel Supports Legislative Effort to Re-engage Economy Safely
- Michigan: MDARD Director Statement Regarding $22.5 Million Rural Broadband Investment from USDA