The Biden Administration’s rule by regulation is gaining speed, and the latest example is the Federal Trade Commission’s plan to ban non-compete employment agreements. In a flash, Lina Khan’s bureaucracy will rewrite labor contracts for 30 million workers.
The FTC’s proposed rule is an air kiss to Big Labor, which demanded that the agency ban non-competes in 2019. Unions want opposition to non-competes as a tool in their organizing kit. Ms. Khan tweeted that one in five U.S. workers is currently “bound” by a non-compete clause that prevents them from switching jobs and thus keeps wages lower than they would be if the employees moved freely.