California Attorney General Rob Bonta, along with a coalition of 17 attorneys general, has filed an amicus brief supporting the Federal Trade Commission's (FTC) prohibition on most non-compete agreements. These agreements often restrict employees from working for competitors or starting their own businesses within the same industry. According to Attorney General Bonta, such agreements limit wage growth and job mobility, particularly affecting workers unable to negotiate.
In April 2024, the FTC, backed by Attorney General Bonta and a multistate coalition, finalized a rule banning employers from entering into or enforcing non-compete agreements in most cases. This rule is currently being challenged by a real estate brokerage in Florida.
"California has some of the strongest worker protections in the country, and we believe all workers have the right to choose the job and employer that is best for them," stated Attorney General Bonta. He added that "the federal prohibition on the use of non-competes allows workers the opportunity to seek better wages and career opportunities by finding new employment within their industry."
Despite California's long-standing ban on non-compete agreements since the 1800s, these contracts remain prevalent across the United States. Studies indicate that approximately 18% of American workers are currently bound by such agreements, with 38% having agreed to one previously due to employer insistence.
The amicus brief argues that a national rule would provide consistent protection for workers while promoting innovation and competition across industries like healthcare. It would also ensure uniformity for both workers and employers operating in multi-state labor markets.
Attorney General Bonta has been active in defending workers' rights this year through various initiatives including issuing consumer alerts about worker protections and taking legal actions against unfair labor practices. His efforts include joining other attorneys general in supporting FTC's proposed rules on limiting non-compete agreements.
Joining him in filing this brief are attorneys general from New Jersey, District of Columbia, Colorado, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Mexico, New York, Oregon, Pennsylvania, Vermont, and Washington.
A copy of the brief is available for public access.