FFC SUPPORTS BANNING NON-COMPETE AGREEMENTSApril 19, 2023
Friends Fiduciary has signed onto an investor letter, coordinated by Zevin Asset Management and ICCR, submitting comments to the FTC in support of banning non-compete agreements, especially for frontline and essential employees. Non-compete contracts are intended to prevent employees from using and sharing trade secrets, however they have become prevalent in frontline employment. Ample evidence demonstrates that non-compete clauses have increased racial (and gender) wage gaps by systematically suppressing the wages of non-white workers and research has shown that women and people of color are less likely to negotiate or violate non-competes than their white counterparts. These outcomes artificially restrict the talent pool for companies to recruit from, which also hinders corporate growth, particularly during the current period of worker shortage. Banning non-compete agreements will help build a more resilient society and workforce and expand job opportunities for 30 million Americans.