Usa

US forces Glass, safety firm to drop non-compete clause for staff

US forces Glass, safety firm to drop non-compete clause for staff

US forces Glass, safety firm to drop non-compete clause for staff

WASHINGTON (Reuters) – Beneath stress from the Biden administration, two glass container producers and a safety agency have agreed to drop non-compete necessities that restrict the place staff can work in the event that they stop their jobs.

The Federal Commerce Fee (FTC), which enforces antitrust legal guidelines, mentioned that Ardagh Glass SA and OI Glass Inc., two of the most important US glass container producers, have agreed to void their non-compete agreements, affecting greater than 1,700 staff. Ardagh typically bars ex-employees from being employed by one other firm for 2 years whereas OI Glass mentioned the corporate should present written consent for ex-employees to take new jobs within the business, the FTC mentioned.

The corporate mentioned the lawsuits had been the primary it had filed to cease what it described as “illegal non-competitive restrictions.”

Prudential Safety, Inc. and Prudential Command, two affiliated corporations that bought most of their companies, additionally agreed to cease imposing non-compete provisions in employment contracts.

Ardagh, OI Glass and Titan Safety, which acquired Prudential Safety, didn’t instantly reply to requests for remark.

US antitrust businesses, together with the FTC, have gone after corporations that restrict employee alternatives, however the Biden administration has put extra emphasis on the problem.

In 2020 FTC Commissioner Rebecca Slaughter mentioned research estimated that non-competition provisions cowl 16% to 18% of all US staff. He mentioned that 12% of staff making lower than $20,000 per yr are topic to the availability.

(Reporting by Diane Bartz; Enhancing by Josie Cao)



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