Golden State Today

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 imposed by employers, restrict employees from working for competitors or starting their own businesses within the same industry. Critics argue that such contracts limit wage growth and job mobility, especially for workers unable to negotiate.

In April 2024, with backing from Attorney General Bonta and other states, the FTC established a nationwide rule banning these agreements in most situations. However, this rule faces a legal challenge from a Florida real estate brokerage.

Attorney General Bonta stated: "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." He added that the federal ban on non-competes enables workers to pursue better wages and career opportunities. "This rule will promote innovation, competition, and better working conditions – and we believe it’s on firm legal ground."

While California has banned non-compete clauses since the 1800s, they remain prevalent nationally. Studies indicate about 18% of American workers are currently bound by such agreements. In today's amicus brief, Bonta and his coalition argue that the FTC's rule will establish consistent national protections benefiting workers across various industries.

Attorney General Bonta remains committed to defending workers' rights. This year alone he has issued consumer alerts about worker protections in California; defended wages in lawsuits like West Coast Drywall; secured settlements against companies violating labor laws; investigated gender discrimination within major organizations like the NFL; supported FTC proposals limiting non-competes; advocated for healthcare workers’ rights; and fought for transportation employees' welfare as well as immigrant children's rights.

Joining Attorney General Bonta 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 Washington.

A copy of the brief can be found here.