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Matthew Johnson: Fair competition in the U.S. labor market is threatened by more than the noncompete clauses targeted by new Federal Trade Commission rule
['Maria Monroe', 'Authors', 'Peter Norlander', 'Bill Baer', 'Jonathan B. Baker', 'Michael Kades', 'Fiona M. Scott Morton', 'Nancy L. Rose', 'Carl Shapiro', 'Tim Wu']
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“New Evidence on Employee Noncompete, No Poach, and No Hire Agreements in the Franchise Sector” reports the results of an analysis of 17,785 franchise disclosure documents and suggests that rulemaking and enforcement efforts might miss anticompetitive practices that currently lie in the shadows—buried in millions of pages of documents already in the public domain. Language found in the disclosure documents also reveals that despite aggressive enforcement efforts by the Washington state attorney general’s office, approximately 10 percent of disclosure documents in 2022 contained language that bars firms from soliciting or hiring another firm’s workers within the same franchise chain.