orce has to be loose to work for company's competitors: US regulator
The US government seeks to ban agreements that allow
agencies to limit the ability of crews to leave for work in competition.
The Federal Exchange Commission (FTC) said the non-compete
clauses were "exploitative" and unfairly restricted the chances of an expected
The FTC, which enforces the opposition
regulation, said a ban would encourage a more dynamic financial system.
Non-compete clauses were developed to prevent dropouts from
becoming members of opponents and sharing trade secrets.
The US Chamber of Commerce, one of the
most effective trade lobby groups, called the idea "blatantly illegal."
"Because of the organization's advent of
more than a hundred years ago, Congress has in no way delegated to the FTC anything
The FTC said that non-compete clauses have emerged
as an integral part of the US labor market and estimates that they affect
Though it was long associated with the
ranks of business company executives and high-tech people
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