Yes, I’m a Proud ‘Khan-Servative’

The New Center: A Wednesday Newsletter From Sohrab Ahmari

The Federal Trade Commission—led by chairwoman Lina Khan, President Biden’s indefatigable antitrust czar—has delivered a resounding victory for American workers by banning so-called noncompete agreements. These clauses—often tucked into the lopsided employment documents workers are compelled to sign upon taking a job, or even suddenly sprung on them long after employment began—are one of the many ways employers coerce employees, giving the lie to the notion that labor markets are optimally competitive, since both sides supposedly enjoy a symmetrical right to walk away from each other.

With noncompete agreements, bosses can prevent workers from taking a job with another firm deemed a competitor or even from starting their own firms in the same industry. In doing so, these clauses eviscerate workers’ ability to exert bargaining power: If you are rendered incapable of seeking a job with another employer in the same industry, you can’t bargain for better wages and working conditions in your current gig.