THREAD: More than a quarter of private-sector workers are required to enter noncompete agreements, which ban workers from working for––or starting––a competing business. Read our new report from @hshierholz and Alexander J.S. Colvin of @cornellilr: epi.org/publication/no…
@hshierholz @cornellilr These restrictive agreements are not only inflicted upon high-wage workers, but also low-wage workers living paycheck-to-paycheck. 29% of employers with an average hourly wage below $13.00 require noncompetes for all their workers.
@hshierholz @cornellilr Noncompetes limit competition among businesses and stifle workers’ wage growth—given that changing jobs is where workers often get a raise.
@hshierholz @cornellilr And the use of noncompetes is growing. A 2014 survey by @evanpstarr found that 18.1% of workers were covered by noncompetes. papers.ssrn.com/sol3/papers.cf…
@hshierholz @cornellilr @evanpstarr Noncompetes are part of a disturbing trend of employers requiring workers to sign away their rights. More than half of employers that have mandatory arbitration procedures also require at least some of their employees to enter into noncompete agreements.
@hshierholz @cornellilr @evanpstarr Congress is currently considering bipartisan legislation to prohibit noncompete agreements, while the FTC is reviewing a petition seeking a rule prohibiting noncompete agreements as an unfair method of competition.
@hshierholz @cornellilr @evanpstarr Learn more about our report in @CBSMoneyWatch via @iaivanova. cbsnews.com/news/half-of-u…
@hshierholz @cornellilr @evanpstarr @CBSMoneyWatch @iaivanova TL;DR: Noncompete agreements are ubiquitous, harmful to wages and to competition, and part of a growing trend of employers requiring workers to sign away their rights.
epi.org/publication/no…
epi.org/publication/no…
