Obama encourages ban on non-compete agreements for some workers

By seeking an end to non-compete agreements for low-wage employees who are not privy to trade secrets, the Obama administration hopes to make a more competitive labor market, support faster wage growth, and prevent workers from being put in situations where it's difficult to get a new job. According to the White House, 20 percent of American workers are currently bound by non-compete agreements, 14 percent of whom earn less that $40,000 per year, including fast food and warehouse workers. In addition to banning non-compete agreements for low-wage workers, the Obama administration’s recommendations also include a ban on non-compete agreements if they are not proposed before the job offer, or if a promotion is accepted by the employee, and a ban on such agreements for workers whose jobs promote public health or safety.