Non-compete clauses in contracts can prevent a worker from getting a better paying job. It’s the reason Washington Attorney General Bob Ferguson and his Democratic counterparts in other states have worked to eliminate non-compete clauses.
Now, a congressional committee is taking up the issue.
If you’re flipping burgers at a fast food place for minimum wage and a franchise down the street offers to pay you more. Under a non-compete clause, you couldn’t take the job.
After threatening to sue, Ferguson says dozens of corporate chains agreed to get rid of the non-compete clauses in Washington state. Nationwide, more than 150 have agreed to do the same.
The list of employers who are ditching the practice include Johnny Rockets restaurants to Kiddie Academy child care facilities.
A representative from the Attorney General’s Office were among those scheduled to testify today before a U.S. House subcommittee.
