Jan 12 (Reuters) – The U.S. Chamber of Commerce criticized on Thursday a proposed rule of the Federal Commerce Fee (FTC) that seeks to ban corporations from having non-compete clauses with staff, saying such a transfer would hurt financial development and restrict competitors.
The FTC proposed the rule final week that may ban corporations from requiring staff to signal non-compete provisions in contracts, within the newest signal from the Biden administration of its help for labor.
Corporations usually use these provisions to maintain staff from leaving for higher jobs.
“It’s not the function of presidency to direct the conduct of enterprise, redistribute energy in our financial system, or undermine the competitors that fuels free enterprise,” the most important U.S. enterprise group’s President Suzanne Clark stated on the State of American Enterprise occasion.
The Chamber additionally stated it may mount a authorized problem.
Reporting by Akanksha Khushi in Bengaluru; Modifying by Muralikumar Anantharaman
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