Attorney General Kwame Raoul has taken a firm stance in the battle over noncompete clauses, as reported by the Illinois Attorney General's Office. Aligning with a coalition of 18 attorneys general, Raoul filed an amicus brief backing the Federal Trade Commission's (FTC) sweeping rule that aims to prohibit these restrictive employment contract provisions nationwide.
In a move that might reshape the labor market, the FTC's final Noncompete Clause Rule, established in April 2024, barred employers from incorporating noncompete clauses into new employment contracts, while also invalidating most pre-existing ones. The motivation, as the FTC pointed out, is to liberate employees from agreements that stifle their career progression and, dampen wages, and to foster a more innovative economy by releasing individuals from the confines of their current job roles. Attorney General Raoul emphasized, "Noncompete clauses unfairly prevent millions of workers from getting higher-paying jobs that allow them to better provide for themselves and their families. They also prevent workers from leaving hostile or unsafe work environments." This position reflects Raoul's broader advocacy for workers' rights and a competitive job market.
Despite the FTC's intentions, business interest groups have mounted challenges in court. One such case led to a preliminary injunction in Florida, where Properties of the Villages Inc. v. FTC became a legal blockade for the enforcement of the new rule against the plaintiff corporation. The amicus brief filed by Raoul and his cohorts supports the FTC in their appeal to the U.S. Court of Appeals for the 11th Circuit, intent on overturning the injunction.
This action dovetails with Raoul's continuous fight against underhanded employment practices. Previously, he was part of a band of attorneys general making strides with a settlement with Valvoline to halt noncompete clauses for hourly employees, following on from a 2019 victory where four fast-food chains were persuaded to drop no-poach agreements that hampered workers' mobility across franchises. With Raoul's execution of the Illinois Freedom to Work Act, which curtails noncompete contracts for earners of $75,000 per year or less, there is an evident pattern: The Attorney General is proactive in dismantling barriers to labor market fluidity, equity, and empowerment.
Raoul's collaborative approach, working alongside attorneys general from states including California, New York, and Pennsylvania, is part of a national discourse on the future of worker freedom—an issue that transcends state lines and affects millions. "I support the FTC's efforts to remove these career obstacles for workers in Illinois and across the nation," Raoul said, aligning himself with a vision that champions the worker's right to economic self-determination.
