PI Original Ellyn Fortino Thursday October 27th, 2016, 2:34pm

White House Encourages States To Ban Non-Compete Agreements, Illinois Attorney General Agrees

The Obama administration is urging states to ban unnecessary non-compete agreements that can hinder wage growth and labor market competition. Illinois Attorney General Lisa Madigan, who has been active in the push to limit improper non-competes, commended the White House's call to action.

The White House issued a call to action Tuesday for states to ban unnecessary non-compete agreements in an effort to boost wage growth, entrepreneurship and labor market competition.

Non-compete agreements, intended to safeguard trade secrets, bar employees from working at a competitor after leaving a job. Critics says non-competes are being misused and can hinder worker mobility.

The White House reports that 30 million workers are currently impacted by non-compete agreements, which now cover 15 percent of workers without a college degree and 14 percent of workers earning less than $40,000 a year.

As part of its call to action, the Obama administration is encouraging states to ban non-compete agreements for low-wage workers and other employees "unlikely to possess trade secrets." Also, non-competes should not apply to workers who are laid off.

The administration further recommends that states prohibit employers from proposing non-competes after workers accept a job offer or promotion.

"Workers have been forced to sign non-competes in order to work at sandwich shopsdoggy dare care and grooming services, summer camps, and warehouses," Ross Eisenbrey, vice president of the Economic Policy Institute, wrote in a blog post reacting to the White House's announcement. "None of these jobs involves trade secrets or any proprietary information that can justify restraining the ability of employees to seek better pay and working conditions somewhere else.

"Research comparing states that have and have not banned non-compete agreements or strictly limited their use indicates that non-compete agreements measurably depress wages," he continued. "By discouraging startups by former employees, they also limit entrepreneurship and restrain productivity increases."

Illinois Attorney General Lisa Madigan and state Sen. Jacqueline Collins (D-Chicago) were among six state-level elected officials who, as of Tuesday, have announced their support for the administration's call to action. 

"I applaud the White House for shining a light on non-compete agreements and how they can unfairly impact the lives of lower wage workers," Madigan said in a statement. "We need to ensure that employees around the country have the ability to change jobs and pursue new job opportunities so they can build successful lives. My office will continue to address the overuse of non-compete agreements in Illinois."

Madigan made news in June when her office sued Jimmy John's over the "highly restrictive non-compete agreements" the sandwich shop chain imposed on its employees. Shortly thereafter, Jimmy John's announced it would end its use of non-competes as part of a settlement with the New York attorney general's office, which had also been investigating the issue. 

The White House says non-compete agreements are generally banned in only three states: California, North Dakota and Oklahoma. 

In Illinois, Gov. Bruce Rauner signed legislation in August banning the use of non-compete agreements for workers earning the minimum wage or less than $13 an hour. The measure, called the Illinois Freedom to Work Act, takes effect in January.

"It is nonsensical and immoral for low-wage employees in the United States to be confined to stringent agreements that prohibit them from finding meaningful employment within their field," Collins said in a statement. "These types of practices increase the financial burden faced by many living in poverty. We are glad that the White House is taking action on this important issue and support the limitation of non-compete agreements, such as the Illinois Freedom to Work Act that eliminates non-compete agreements for all low-wage workers in Illinois."

Comments

Excellent post share with us and this blog is impresses more people to assignment writer reading that blog

These changes should go for good. Very much hope that things will get better soon.

123essay

Qui peut me dire ou acheter viagra pas cher ici en france ?

The call to action seeks to enlist the support of state governments to combat the use of employee non-competes, or to at least minimize the costs it believes are associated with their use. Have a look at http://webelations.com/free-march-2017-calendar-printable/ & http://webelations.com/free-april-2017-calendar-printable-templates/

Greta information you have provide in this post.Thank you.Essay Writer UK

JEE Mains 2017 Examination Central Jee Main Result of Secondary Education (CBSE) conducts the Jee Main Result 2017 Joint Entrance Examination (JEE) Mains exam every year in the months of March / April.Jee Mains Results  The CBSE Board is going to announce the JEE Mains Exam Results in the month of April 2017.

Stingray City is a tour company in the Cayman Islands which offers tours to Stingray City and the Cayman Islands Turtle Centre. Our top clients are cruise ship visitors and local resorts. Top tour is Stingray City, Coral Garden and Starfish snorkel. Mostly travel sites

It's my pleasure to join your great community today, got many much very useful information here, your article are amazing! Thanks much! kicksvovo link

Very useful post. This is my first time i visit here. I found so many interesting stuff in your blog especially its discussion. Really its great article. Keep it up. Secondary geography tuition

This is good news that leads me to rapture, more of such material places to eat near me

JIO Fiber Broadband: Jio Fiber is a fibre optic based broadband service, JIO Fiber registration offering high speed internet with speed up to 100 Mbps. Stream 4K videos, connect multiple devices & enjoy Digital Life.

Excellent post share with us and this blog is impresses more people to buy assignment paper reading that blog

http://www.nationwidearrestsearch.com/Find an Inmate who has been incarcerated in the United States in any jail or prison in the United States. Nationwide Arrest Search

Non complete agreement really effect on low wage worker. US give the oppurtunity to becomes sucessful life  essay writer uk

starting January 1, 2017, the new Linois Freedom to Work Act  will prohibit private sector employers from entering into covenants not-to-compete with "low-wage employees" who work in the state, and render unenforceable any such restrictions that are entered into on or after that date.

The Act defines a "low-wage employee" as one who earns the greater of $13.00 per hour or the minimum wage required by applicable federal, state, or local law. As of January 1, 2017, that would include any private sector employee in Illinois who is paid $13.00 per hour or less.

law essay writers uk

"Research looking at states that have and have not prohibited non-contend understandings or entirely constrained their utilization shows that non-contend assentions quantifiably discourage compensation, Please Do My Essay " he proceeded. "By demoralizing new companies by previous workers, they additionally restrict business and control efficiency increments."

Nice decision by White House. Hope it will work for state and peoples. 

Essays On Web UK

This Website Is very useful and knowledgeable. and these Blogs need time to check more.

Hello

I found so many interesting stuff in your blog especially its discussion.thanks

UK Banners

Comments

Log in or register to post comments