Through an executive order, the US president, Joe Biden, seeks to reduce the ability of employers to prevent workers from going to other companies, in addition to eliminating some of the state professional license requirements that make it difficult to obtain a job. According to AP, the objective is to strengthen the weight of workers in the economy, as well as increase their employment possibilities and thereby generate more competition between companies, but with the sole purpose of benefiting workers without having repercussions for having resigned to seek an improvement.
This presidential initiative as such is not new, as it is based on the 2015 proposal by the Barack Obama Administration to get states to reduce the burdens of their licensing requirements. At that time, Joe Biden was the vice president of the country, so he is very clear where the issue is moving. The president’s move is seen by experts on the subject as key, since this could translate into better working conditions, such as wage increases, and would pave the way for this to be implemented throughout the country.
The executive order will require the Federal Trade Commission to restrict and even ban the so-called non-competition agreements, which have prevented workers in industries from fast food to technology from being able to go to other companies to earn a higher salary.Perhaps one of the greatest benefits of this is that the necessary locks are put in place so that the Federal Trade Commission prevents employers from sharing data on wages and benefits with each other in order to suppress the income of workers. The Economic Policy Institute produced an analysis conducted in 2019, where it estimated that between 36 and 60 million workers could be subject to non-compete agreements, with what they are tied up and are subject to what the employer wants, leaving aside their growth and professional development. In addition, the order also seeks to prohibit “unnecessary” occupational licenses that can harm the purchasing power of spouses of military and qualified immigrants, so this proposal is broader than it can be seen. In 2018, the Federal Trade Commission reported that at least 30% of jobs in the United States require a license; this situation may be limited so that, teachers can move across state lines. While some for this situation, they must spend money in schools to reaffirm skills that they already have.