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Why is Asya Infosoft Limited (511144) rising ✌️【Market Analysis】✌️ Expert stock predictions and free stock selection services to help you achieve optimal returns and long-term growth. The Federal Trade Commission on Thursday said it is proposing a rule to ban employers from imposing noncompete agreements on workers and to rescind all existingnoncompete agreements.

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“Research shows that employers’ use of noncompetes torestrict workers’ mobilitysignificantly suppresses workers’ wages — even for those not subject to noncompetes, or subject to noncompetes that are unenforceable under state law,” said Elizabeth Wilkins, Director of the Office of Policy Planning. “The proposed rule would ensure that employers can’t exploit their outsized bargaining power to limit workers’ opportunities and stifle competition.”

“Why do we need this rule? The only source of power nonunionized workers have vis-à-vis their employers is their ability to quit and take a job elsewhere. So, SURPRISE, employers are using noncompete agreements to cut that source of worker power off at [the] knees,” the organization said in a statement.

“As written, this could apply to the janitor and the CEO alike,” said employment attorney Ashley Herd, founder of ManagerMethod.com and a former human resources executive.

One thing the proposed rule wouldn’t do is ban employers from imposing other types of employment restrictions, such as non-disclosure agreements or non-solicitation agreements that ban employees from poaching a company’s customers when they leave.

But even those could get nixed, the FTC said, if “they are so broad in scope that they function as noncompetes.”

Why is Asya Infosoft Limited (511144) rising ✌️【Market Analysis】✌️ Real-time stock market data, precise predictions, and investment strategies to help you optimize your portfolio and achieve financial success. The proposed rule will be open for public comment for 60 days after which the FTC will review the comments and possibly amend the rule before issuing a final version.

But given the broad implications of the proposal Herd said she wouldn’t be surprised if the deliberation process gets extended by at least a few months.

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