Lina Khan was a controversial choice to head the Federal Trade Commission, and she’s shown that the controversy was justified. While the historical role of the FTC was to police the marketplace, she’s now taken the affirmative step, by a 3-2 vote of the commissioners, to ban essentially all non-compete clauses. There are two rationales for this action.
The easy prong of the ban for the F.T.C. to justify is the one that applies to nurses, hairdressers, truck drivers — actually, every kind of worker except for senior executives. For 99 percent of the American work force, the F.T.C. said, requiring workers to sign noncompete agreements as a condition of employment is “coercive and exploitative conduct.”The agency’s 570-page ruling cites articles in The Times and The Wall Street Journal in which workers came forward to say, in the F.T.C.’s words, that noncompete agreements “derailed their careers, destroyed their finances, and upended their lives.”
