After decades of pay erosion US workers have temporarily gained some leverage over employers. Lina Khan wants to give them even more. Last week, Khan, chair of the Federal Trade Commission, proposed a rule that would effectively end the practice of non-compete clauses.
Non-competes prohibit workers from joining rivals for some specified period of time. Around a fifth of American workers are bound by them.
Typically, these workers have specialised skills or experience. Non-competes have even been deployed on Wall Street as a requirement for receiving an annual bonus. But increasingly low-wage employees in sectors such as food service and security have to sign them.
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