White House urges states to reform non-compete clauses

Posted at 3:58 PM, Oct 25, 2016
and last updated 2016-10-25 15:58:33-04

WASHINGTON (AP) -- The White House is urging states to ban non-compete agreements for low-wage workers as part of an effort it says will increase competition in the economy.

A White House report released Tuesday says the agreements too often prevent laid-off workers from finding new jobs in their field.

The report cited research showing 18 percent of U.S. workers have signed agreements preventing them from immediately working for a competitor. That includes 15 percent of employees without a college degree.

The White House is calling on states to ban the agreements for workers who don't possess trade secrets and to require companies to be more transparent about contracts.

In a blog post, Vice President Joe Biden writes "no one should have to sit on the sidelines" because of an unnecessary non-compete clause.