{"text":[[{"start":6.95,"text":"Companies’ rising use of non-compete clauses is dragging down productivity in rich economies, according to new research that found about a third of private sector employees restricted from joining a rival. "}],[{"start":19.3,"text":"About 30 per cent of employers surveyed by the OECD said they had increased their use of the clauses in the past five years, with a fifth of employees “definitely” covered by the clauses and a further 10 per cent “probably” affected. "}],[{"start":33.7,"text":"The OECD argues the clauses are economically damaging because they prevent workers moving to a new job or starting a new company where they might be more productive, as well as limiting their ability to bargain for higher wages. "}],[{"start":46.150000000000006,"text":"It estimates that a 10 percentage-point increase in the prevalence of non-compete clauses in an industry was associated with a 1.9 per cent decline in the level of labour productivity, with workers stuck in sub-optimal jobs and firms less able to gain new skills. "}],[{"start":61.400000000000006,"text":"In many countries, non-competes have spread into parts of the labour market where the original justification of protecting sensitive information and firm-specific information is “weak or absent”, the research found, pointing to their use among entry-level fast-food staff in the US, manual workers in Italy and childcare workers or yoga instructors in Australia. "}],[{"start":83.75,"text":"Andrea Garnero, an OECD senior economist, said it was striking that the clauses were widely used even in jurisdictions where they were tightly regulated and difficult to enforce in court. For example, they were just as common in California, where they have been banned for more than a century, as in other parts of the US, he said. "}],[{"start":102.05,"text":"For employers, there was “no cost to putting a clause in” and the fear of legal action had a “chilling effect” on employees even if it was unlikely to be upheld in court, Garnero said. "}],[{"start":111.85,"text":"About one in 20 workers surveyed for the research, which covered 15 OECD countries, said they had been stopped from moving jobs or starting a new business due to a non-compete clause. "}],[{"start":122.64999999999999,"text":"Non-competes are on the rise despite policy initiatives in several countries to restrict their use. US regulators have abandoned proposals for a blanket ban aired under the Biden administration, but Australia plans to limit their use to higher earners from next year. "}],[{"start":137.25,"text":"Canada has also announced plans for tighter regulation and the UK government has consulted on options for reform ranging from an outright ban on all non-compete clauses to curbs on their use for lower earners or limits on the length of time for which they can apply. "}],[{"start":153.6,"text":"The OECD urged governments to look at ways to enforce restrictions on the use of non-competes, pointing to Spain’s ability to fine employers that use the clauses wrongly, and to do more to help workers understand their rights."}],[{"start":166.65,"text":"The survey also showed employers making growing use of other types of restrictions, such as non-disclosure agreements, non-solicitation clauses that prevent workers approaching former clients or colleagues, and requirements to repay bonuses or training costs if they leave their roles. "}],[{"start":181.65,"text":"The OECD said there was also evidence that no-poaching and wage-fixing agreements between companies — usually considered illegal — were “more widespread than previously assumed”, with half of employers saying they were aware of the practices in their industry. "}],[{"start":201.2,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1783471348_7037.mp3"}