On Thursday, January 5, the Federal Commerce Commission (FTC) launched a proposal that might prohibit employers from introducing non-compete clauses that restrict staff’ freedom to discover alternatives.

Within the freelance context, a non-compete clause prohibits you from competing straight or not directly along with your consumer for a interval of time, from doing comparable work for another person, and from beginning your personal enterprise that may compete with the consumer.

Non-competition clauses forestall workers from resigning from their job and taking over a brand new job with a competing firm or beginning an analogous enterprise of their very own inside a sure interval of time. On this means, these agreements have unfairly denied staff the liberty to alter jobs, negotiate higher wages and begin new companies. The FTC estimates {that a} ban on these agreements may increase wages by practically $300 billion yearly by permitting staff to reap the benefits of higher alternatives.

Aiming to shift the steadiness of energy from companies to staff, the rule, if accomplished, wouldn’t solely ban non-competition clauses going ahead; As well as, employers must carry current non-competition clauses and inform workers concerning the change. Most significantly, the proposal covers unbiased contractors and interns along with full-time workers.

Non-competition clauses are a hindrance, particularly for freelancers and the self-employed whose livelihood depends upon project-related work. The agreements restrict freelancers’ skill to decide on their purchasers and preserve a number of jobs and revenue streams.

The Freelancers Union has labored to ban non-competes in NYC Council and elsewhere throughout the nation. With the passage of the FTC rule, we might not should go from state to state to make sure freelancers throughout the nation are given the chance to work with out impediments from earlier purchasers. We’re enthusiastic about this motion on the federal level and applaud the FTC for taking a stand on staff.

The regulation has but to return into power. The general public has 60 days to touch upon the proposed rule, after which a ultimate rule could possibly be launched and enforced a couple of months later. We urge our members to put up a public remark to make sure this rule applies and helps freelancers work the way in which you need them to!