U.S. Federal Trade Commission proposes a ban on non-compete agreements that would also cover independent contractors (freelancers) and interns in addition to full-time employees.
The Economist welcomes FTC’s proposal, citing an estimate that as many as one-fifth of American workers are restricted by non-compete clauses, reducing innovation and productivity spread as a result.
Our take: If this goes through in the USA (and later in the EU), it could be one of the most important pieces of legislation to support freelancers. Many independents who work for established companies are expected to sign non-compete agreements without adequate compensation, making them less competitive and tying their expertise to a limited number of clients. Breaking these shackles would be a good thing.
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