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Trump pushes back on criticism of economy in contentious prime-time speech; 'A gut punch': GA small-business owner on loss of ACA subsidies; Conservationists: CO outdoor economy at risk from development; Report: MO outpaces nation on after-school meals but gaps remain.

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House Democrats gain support for forcing a vote on extending ACA subsidies. Trump addresses first-year wins and future success and the FCC Chairman is grilled by a Senate committee.

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States are waiting to hear how much money they'll get from the Rural Health Transformation Program, the DHS is incentivizing local law enforcement to join the federal immigration crackdown and Texas is creating its own Appalachian Trail.

FTC Noncompete Decision Could Help Georgia Workers

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Friday, April 21, 2023   

Earlier this year, the Federal Trade Commission said it intends to ban noncompete agreements, and hundreds of people have submitted comments on the proposed rule change.

Noncompete terms bar workers from joining a competing business, or starting their own business, for a set period of time after leaving a job.

Teófilo Reyes, chief program officer for Restaurant Opportunities Centers United, called it a cruel practice meant for employees in more advanced fields, and said it should not be used for service workers and others who earn lower wages.

"It's a detriment to workers," Reyes argued. "It makes it harder for them to use knowledge that they've gained to improve their wages, improve their position, because they can't easily transfer from one job to another."

Supporters of noncompete clauses contended they protect a company's confidential information, trade secrets and intellectual property. The FTC estimates around 30 million American workers are under noncompete agreements. The public comment period on the rule change ended this week. If approved, the ban could go into effect this fall.

A few states, including California and Oklahoma, have nearly prohibited noncompetes for employment.

Here in Georgia, such agreements are easily enforceable under state law. Reyes argued the contract terms rob workers of the freedom and power to move to a different employer or line of work without restrictions.

"Because there's been a labor shortage, wages are actually increasing," Reyes pointed out. "And so, this is another tool that employers use to keep wages artificially low. Because if you can't move from your low-wage job to a higher-paying job, that means that it keeps everybody's wages a little lower."

According to FTC estimates, the proposed rule would boost workers' total earnings across industries and job levels by 250-billion dollars per year or more. Researchers also have found banning noncompete clauses nationwide would shrink racial and gender wage gaps.


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