Federal Trade Commission is cracking down on coercive employment agreements that keep workers bound to their jobs.
Federal regulators are taking aim at companies that make workers promise not to take jobs elsewhere as a condition of employment.settlements with three companies that made workers sign noncompete agreements, in which they promised not to work for competitors for a period of time after leaving their jobs.
Michigan-based Prudential Security and Prudential Command allegedly required more than a thousand minimum-wage security guards to sign noncompetes, going so far as to sue former employees who left for better jobs, the FTC said in a complaint.
"These cases highlight how noncompetes can block workers from securing higher wages and prevent businesses from being able to compete," FTC Chair Lina Khan said in a statement. Under the FTC settlement, Prudential and its former owners, Greg Wier and Matthew Keywell, must notify workers that they are no longer bound by noncompetes. They also agree not to use noncompetes in any future businesses. "Titan does not and has never imposed noncompete restrictions on its security officers. We applaud the FTC's efforts to halt unlawful noncompete restrictions and to protect workers," the spokesperson said in a statement.
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