Jayapal Statement on FTC Abandoning Noncompete Rule

WASHINGTON, D.C. - U.S. Representative Pramila Jayapal (WA-07) released the following statement regarding the Federal Trade Commission's (FTC) decision to drop its appeal on the noncompetes rule which would have banned noncompetes agreements that prevent workers from taking new jobs.

"The FTC's decision to abandon the noncompetes rule is a major setback for American workers. The rule banned anticompetitive noncompete clauses that employers use to trap workers in worse jobs with lower pay. By walking away from this fight instead of defending the rule, the FTC is siding with the powerful corporate interests that profit from exploiting workers. This retreat represents a serious failure to fulfill the agency's core mission of protecting against anticompetitive abuse.

"Noncompetes harm an estimated 30 million workers, preventing nearly one in five Americans from seeking better jobs or starting new businesses. Banning these anticompetitive clauses would have created immense economic benefits. The FTC's own analysis projected that the ban would increase worker earnings by up to $488 billion over a decade. These higher wages would come from employers having to truly compete for talent. The rule would have also spurred new business creation and boosted innovation, with thousands of new businesses and patents projected annually.

"The original rulemaking process received more than 26,000 public comments, providing extensive input from workers, businesses, and the public. The evidence is clear. The FTC should have defended its rule and its authority to protect the American public. By failing to do so, it has missed a historic opportunity to deliver real economic benefits to working families."

Issues: Jobs, Labor, & the Economy