Lex Luger
(Photo By Russell Turiak/Getty Images)

White House Urges Ban on Non-Compete Agreements, How This Could Affect Pro Wrestler Contracts

According to NBCNews.com, The Obama administration on Tuesday called on U.S. states to ban agreements prohibiting many workers from moving to their employers’ rivals, saying it would lead to a more competitive labor market and faster wage growth.

Should states begin to ban non-compete agreements, this type of law would end clauses usually seen in pro wrestling contracts, which do not permit talents from working for competition promotions for a certain period of time, typically 90 days. Theoretically, this could lead to more Rick Rude or Lex Luger situations, in which talents could compete for one promotion one night, and in the same week debut with another company on their televised program(s). It should be noted, however, that the report does not mention how this law might pertain to independent contractors, and since many pro wrestlers, including those who work for WWE, are considered independent contractors, the law might not fully apply.

The Obama administration said so-called non-compete agreements interfere with worker mobility and states should consider barring companies from requiring low-wage workers and other employees who are not privy to trade secrets or other special circumstances to sign them. Vice President Joe Biden had the following to say on the issue:

“(Workers) can’t reach their true potential without freedom to negotiate for a higher wage with a new company, or to find another job after they’ve been laid off.”

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