Nessel encourages FTC to curb abusive non-compete clauses
Michigan Attorney General Dana Nessel and 18 other Attorneys General submitted a letter to the Federal Trade Commission late last month to encourage the commission to limit the use of abusive non-compete clauses in employment contracts. These clauses continue to negatively impact low-income laborers while limiting job mobility and opportunities for advancement for all affected laborers.
“Nearly 12 percent of all workers with an annual income of $40,000 or less and no college degree are bound by a non-compete clause which limits their professional growth and fosters an anticompetitive approach to business,” said Nessel. “We are calling on the FTC to do the right thing and take action on these clauses that have negatively impacted Michigan’s workforce and unfairly burdened workers with little to no bargaining power.”
Non-compete clauses in employment contracts prevent workers in many industries from moving from one business to another, or from starting their own business.
An estimated one in every five workers — 30 million Americans — are currently restricted by non-compete clauses. Employers use these clauses instead of less harmful ways to protect their interests such as nondisclosure agreements, better compensation and benefits for employees or simply creating a workplace environment where workers want to stay.
In their letter, the Attorneys General assert that by taking action and using its rulemaking authority, the FTC would curb a pervasive, non-competitive practice and encourage all employers to retain workers by becoming better places to work—instead of using scare tactics.
Nessel joins the Attorneys General of California, Delaware, the District of Columbia, Illinois, Iowa, Maine, Maryland, Massachusetts, Minnesota, New Mexico, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, Washington, and Wisconsin in submitting these comments.
Whitmer: Delaying Medicaid work rules avoids wasting money
LANSING, Mich. (AP) — Gov. Gretchen Whitmer says delaying implementation of work requirements for enrollees in Michigan’s Medicaid expansion program would prevent the state from potentially wasting at least $1 million.
The Democrat issued a special message to legislative leaders Tuesday, a day after saying the Republican-controlled Legislature should pause the rules taking effect in January.
She notes a lawsuit is challenging the law and says Michigan will soon spend $1 million to send letters notifying about 200,000 residents of requirements to keep their health coverage. If a court blocks implementation, as has happened in other states, the letter would be invalid.
Whitmer says legislators should “protect Michigan taxpayers while the courts determine legality.”
Republican legislative leaders are rejecting the request. They say pausing the program would push people deeper into dependency.
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