New rule applies to those who earn more than $151,164 per year
“policy maker” It would exempt most new and existing employees from such agreements, except for managers.
The agency said the new rule would create 8,500 new jobs each year, increase worker earnings by $524 per year and reduce health care costs over the next decade. $194 billion predicts that it will decrease.
Technology Non-compete clauses, widely used in industry, prevent employers from freely switching to similar businesses or establishing businesses in the same field. As a result, workers are often forced to stay in jobs they don’t want, move to a lower-paying position, move elsewhere, or defend against costly lawsuits.
FTCAccording to , “An estimated 30 million workers, or about one in five Americans, are subject to non-competes.”
Tensions between employers and employees are tightening, the government has stepped in
Companies now exist competition ban
must revoke its provisions and inform employees of this change. The decision applies to most employees and future hires, but existing agreements with senior executives are still valid as such agreements are likely to have been agreed to by both parties.
third largest in the USA technology sector His employer, Microsoft, removed such provisions in 2022. “While our existing employee contracts contain non-compete obligations, we do not approve of the use of such provisions as a retention tool,” the company said at the time.
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