Michigan UPS worker, born a preemie herself, makes warming blankets for other babies born prematurely

Latest & Breaking News on Fox News 

Some of the tiniest humans on Earth struggle for warmth all year long as they face neonatal hypothermia in hospitals that may not be equipped with specific medical equipment.

Grace Hsia Haberl, a UPS vehicle asset specialist in Michigan, has developed the technology for an incubator blanket as part of her material science engineering capstone project in college.

To date, the resulting product, Warmilu, has warmed more than 37,700 babies in over 19 countries, she said.

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“I learned that around the globe, 140 babies die every day from hypothermia-related causes,” Hsia Haberl, 32, told Fox News Digital. 

“That really struck me because I was born preterm and [at] low birth weight,” she said.

“So if I had been born in any of these resource-scarce countries, I would’ve died. Being so small … the incubator where I spent my first 11 days saved my life.”

Hsia Haberl’s personal circumstances inspired her to create a robust, safe concept that could help others.

“It gave me a powerful drive and almost personal mission to provide infants and the teams serving them [with] the support they needed because I often reminded myself that my parents or [I] could have been in their shoes,” she said. 

Neonatal hypothermia occurs when a newborn’s body temperature is reduced to less than 36.5°C or 97.7°F. It’s a global problem in preemies born both at hospitals and homes, especially in developing countries, the NIH said.

Lawrence Fordjour, M.D., is a neonatologist and clinical associate professor of pediatrics at SUNY Downstate Medical Center in Brooklyn, New York. Through the Making Every Baby Count Initiative (MEBCI), he and others are working to improve the survival of sick and small newborns in Sub-Saharan Africa, where there’s an inability to purchase incubators.

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Warmilu blankets are part of their strategy, he said.

“It allows us to transport the babies and resuscitate the babies in areas where there is a deficiency in providing thermal care,” Fordjour told Fox News Digital. 

Cost-effectiveness and ease of use are two reasons that Fordjour said Warmilu is working in hospitals that lack the resources for premature babies, he said. 

“We use something similar here in the United States, but it’s disposable and [has a] one-time use,” Fordjour said. 

A single Warmilu “can be reused 100 times. You can reactivate the gel and use it over and over again. So, it’s definitely cost-effective. It provides warmth for at least two or three hours for the babies once it’s activated.”

The feedback from doctors and nurses in Ghana confirms Warmilu’s ability to get the job done effectively, he said.

“The survival is better,” Fordjour said. “The providers really acknowledge the benefits of the product. It’s making a big difference.”

Warmilu stands for “Warm, I love you,” Hsia Haberl told Fox News Digital. 

In 2011, she and a team of engineering students at the University of Michigan designed and developed the blanket. It generates non-electric, regulated and long-lasting warmth for infants at risk of becoming hypothermic.

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It consists of a cozy blanket that’s specially designed to cradle a premature infant and an InstaWarmer heat pack, which can be reused up to 100 times, according to Hsia Haberl.

Warmilu’s development continued on through successes and challenges, Hsia Haberl said.

She visited hospitals around the world and often found resource-scarce teams providing warming care for infants on older or broken incubators — or no incubators at all.

Sometimes there were three to six infants placed in one incubator.

“These hospitals would often deliver and care for double the number of infants that might be cared for at the standard U.S. hospital,” Hsia Haberl said.

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Hsia Haberl said she’s traveled to India, Israel, Uganda and Kenya to learn about hospital staffs’ challenges in infant and maternal health.

The team then built a prototype, sought grants and other funding — with encouragement from members of the U.S. and global medical community who knew the need.

In 2017, Warmilu was awarded a U.S. patent — but there was still a long way to go, Hsia Haberl said.

As production, distribution and fundraising pressed forward, Hsia Haberl said she suddenly hit a roadblock that turned into an opportunity.

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“We had an order fall through with one of our ministries of health, and that’s when all of a sudden UPS came into my life,” she said.

“Not only were they able to help us break into these countries — we were in India, Kenya and Uganda at the time — but they gave us our first business shipping account.”

In 2018, Hisa Haberl began working at UPS as a package handler, loading three to five brown trucks a day with 200-400 packages in each. 

She was a small-framed 28-year-old at the time — competing with Eastern Michigan University football players to land a very physical job, she said.

“Most of [my paychecks] went straight to my seamstresses and my warming pack production team to make the blankets,” Hisa Haberl said.

But she said she quickly found out that working for UPS was more than just a job.

“We have a signed business account with them [UPS] and they gave us discounts and deals and resources that [we could not] get through other shipping companies,” she said.

Hsia Haberl credits her work at UPS for other aspects of Warmilu’s growth.

“I learned things like how to file customs paperwork as a small business owner, how to ship to countries like the Democratic Republic of the Congo or South Africa or Ghana. And that was tremendously helpful because, prior to my role at UPS, I lost $30,000 on an order because I messed up on my customs paperwork,” she added.

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UPS employees have even volunteered to be part of the effort by tracing and cutting fabric for the blankets that are now saving lives, Hsia Haberl said.

Hsia Haberl’s coworkers told Fox News Digital that her hard work and spirit inspires others. In addition to working at UPS and running Warmilu, Hsia Haberl is an adjunct lecturer at the University of Michigan.

“It’s amazing how she’s able to balance all those things in her life,” said Joe Zywol, a UPS industrial engineering coordinator who has worked with Hsia Haberl. 

“She always brings 150% energy — and people feed off that.”

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Michael Scott, a UPS corporate communications supervisor, said, “Her energy’s like a bolt of lightning. Grace is one of those people that when they walk into a room, you notice them. She’s on a mission to help people and she’s doing exactly what she set out to do.”

Warming babies in Ukraine is Hsia Haberl and Warmilu’s next big project.

It’s already underway now.

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“There are areas that don’t have electricity right now because of the bombing that’s happened,” Hsia Haberl said. 

“The Ukraine winter is cold and many maternity hospitals have moved their core teams and care facilities underground to protect patients from Russian bombs.”

Hsia Haberl said that as an engineer, it has meant a lot to her to work on “big and audacious” problems and come up with potential solutions.

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When asked what advice she has for students and young entrepreneurs, she said, “Step on up and really find ways where, if you see a problem in the real world, don’t just let it sit.”

She added, “Ask yourself: Is there an actionable step I could take to try to solve that problem?”

 

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Germany working on legislation to enable use of underground carbon storage technology

Latest & Breaking News on Fox News 

Germany is working on legislation to enable the use of the much-discussed technology of underground carbon storage, a top government official said Thursday, adding that it is preferable to releasing carbon dioxide into the atmosphere.

Speaking to an industry group in Norway, Vice Chancellor Robert Habeck, who is also Germany’s economy and climate minister, pointed to the prospects of a “new market” for carbon capture and storage, particularly in the lime and cement industry.

The technology has yet to be deployed at scale. Opponents maintain that it is unproven and has been less effective than alternatives such as solar and wind at decarbonizing the energy sector.

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Habeck, a member of the environmentalist Green party, said that “we are no longer in a situation (where) we can pick and choose.”

“Putting CO2 under the ground is quite simply better than releasing it into the atmosphere,” he said. “For this reason, Germany is now working on a carbon management strategy in order to create the legislation for the use of such technologies in this year, by mid-2023.”

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Data published on Wednesday by a respected environmental think tank indicated that Germany likely missed its target for reducing greenhouse gas emissions again last year, despite a big effort by the new government to expand renewable energy use.

The government has acknowledged that achieving the next big climate milestone — a reduction of emissions by 65% in 2030 compared with 1990 levels — will be a major challenge. Germany, which is home to many energy-intensive industries, aims to cut its emissions to “net zero” by 2045.

 

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Madalina Cojocari: Missing North Carolina girl’s mom, stepdad indicted under post-Casey Anthony case statute

Latest & Breaking News on Fox News 

The parents of North Carolina 11-year-old Madalina Cojocari were formerly indicted by a grand jury Tuesday for failing to report the girl missing for more than three weeks, as prosecutors reportedly pointed to a statute enacted in response to the 2008 Casey Anthony case in Florida years ago.

Cojocari’s been missing for 45 days as of Thursday after the girl was last seen on video exiting a school bus with other children on Nov. 21 by her home in the upscale Charlotte suburb of Cornelius. 

Her mother, 37-year-old Diana Cojocari, and the girl’s stepfather, 60-year-old Christopher Palmiter, each were indicted by a grand jury Tuesday on the charge of failing to report the disappearance of a child to law enforcement. That’s the same charge the pair were first arrested for nearly three weeks ago on Dec. 17, but prosecutors reportedly newly pointed to a state statute known as Caylee’s Law Tuesday. The indictment now advances the case to superior court. 

State Rep. Kelly Hastings, a Republican, said he sponsored the bill years ago in response to concerned constituents asking what would happen should something resembling the Anthony case happen in North Carolina. In 2008, Casey Anthony, then a 22-year-old single mother in Orlando, was charged with murdering her two-year-old daughter, Caylee, whom she failed to report missing for weeks. The girl’s skeleton remains weren’t found until months late, and Anthony ultimate escaped conviction in 2011. 

NORTH CAROLINA POLICE PLEAD FOR MADALINA COJOCARI TIPS ON 42ND DAY SINCE 11-YEAR-OLD VANISHED AFTER EXITING BUS 

When his team started to research North Carolina statute, Hastings said they recognized that “North Carolina had a loophole and didn’t have a time constraint on the reporting,” WSOC-TV reported. “That was a little surprising, but we clarified that and got it addressed in the statutory language,” he said.

In the Cojocari case, a school resource officer and counselor tried several times to contact the sixth-grader’s mother about extended absences, and the woman eventually agreed to bring her daughter to school. Instead, she showed up alone on Dec. 15, according to Cornelius Police Capt. Jennifer Thompson. 

That’s when the parents admitted they hadn’t seen the girl for three weeks since Nov. 23, according to the FBI. Palmiter reportedly took a trip to Michigan to visit family around that same time. 

The mother and stepfather remain held on $250,000 and $200,000 bonds respectively, but a judge ordered that the parents surrender their passport should they be released. The mother and daughter immigrated to the U.S. from the eastern European country of Moldova, where Palmiter also reportedly has family, and the couple and girl have resided in Cornelius, North Carolina, since 2017. 

The FBI cited more than 250 leads in the case and released a handwritten note from the girl’s other family pleading for information that might lead to her safe return. 

Investigators reportedly are focusing on the firepit in the backyard of the family’s two-story brick home not far from Lake Norman where couch cushions were burned around the time the girl went missing in November unbeknownst to police at the time. Last week, a court temporarily sealed search warrants related to the girl’s disappearance until at least March in order to preserve the integrity of the investigation, according to the Mecklenburg County District Attorney’s Office. 

When pressed by law enforcement on why she waited to report her daughter missing, the mother allegedly remarked that she felt doing so sooner could “cause conflict” between her and the girl’s stepfather, WCNC reported. The elder Cojocari also allegedly told investigators that she believed Palmiter “put her family in danger” but did not elaborate.

 

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NFL Player Damar Hamlin Showing ‘Remarkable Improvement’

USA – Voice of America 

Buffalo Bills safety Damar Hamlin has shown what physicians treating him are calling “remarkable improvement over the past 24 hours,” the team announced Thursday, three days after the player went into cardiac arrest and had to be resuscitated on the field. 

“While still critically ill, he has demonstrated that he appears to be neurologically intact,” the Bills said in a statement. “His lungs continue to heal and he is making steady progress.” 

Bills rookie cornerback Kaiir Elam also posted a message on his Twitter account that said Hamlin “is doing better, awake and showing signs of improvement.” 

The developments came as the Bills were scheduled to return to practice on Thursday for the first time since Hamlin collapsed after his heart stopped after making a tackle and was rushed to the University of Cincinnati Medical Center during the first quarter of Buffalo’s game against the Bengals on Monday night.

The second-year player has spent the past two days sedated and listed in critical condition.

The Bills’ announcement comes as they prepare to play a home game against the New England Patriots on Sunday, and with the team still dealing with the shock of seeing their teammate collapse on the field, his heart not beating.

After returning home early Tuesday once the game was suspended, the Bills held meetings and a walkthrough practice without any media availability on Wednesday. On Thursday, players were spotted arriving at the facility, though the team has not yet released a practice schedule.

The chilling sight of Hamlin collapsing, which was broadcast to a North American TV audience on ESPN’s “Monday Night Football,” has led to an outpouring of support from fans and players from across the league.

Numerous players — former teammates and those who didn’t know Hamlin until Monday — voiced their support, while saying they were shaken by what happened.

Colts safety Rodney Thomas made the two-hour drive from Indianapolis to Cincinnati on Tuesday just to be by the side of his former high school teammate.

“He’s a fighter. I know he’s a fighter and there’s no other thought in my mind other than him walking out under his own power,” Thomas said Wednesday.

Minnesota Vikings defensive tackle Harrison Phillips, who spent the previous four seasons playing for Buffalo, had dinner delivered to the hospital for Hamlin’s family and medical staff.

Hamlin’s marketing representative Jordon Rooney said Wednesday that the player’s family was buoyed by the words and acts of kindness.

“They are elated right now,” Rooney said. “Damar is still their first concern. But for them, they always look at how they can turn a somewhat troubling situation into a good one. The bounce back from this, for him and his family, is going to be incredible.”

What remains unclear is whether the NFL will reschedule the Bills’ game against the Bengals, which has major implications in determining the top spot in the AFC. The playoffs are set to open on January 14.

The Chiefs (13-3) have a half-game lead over Buffalo (12-3), with the Bills owning the tiebreaker after beating Kansas City this season. The Bengals (11-4) are currently the third seed and have also defeated the Chiefs.

Hamlin was hurt in the first quarter when he was struck squarely in the chest while making what appeared to be routine tackle of Bengals receiver Tee Higgins. Hamlin briefly got up and adjusted his facemask before collapsing backward.

Hamlin was selected by Buffalo in the sixth round of the 2021 draft out of Pitt. He spent his rookie season limited to special teams roles, and took over the starting safety job in Week 3 in place of veteran Micah Hyde, who remains sidelined by a neck injury.

Fans, team owners and players — including Tom Brady and Russell Wilson — have made donations to Hamlin’s Chasing M’s Foundation, which had raised more than $7 million by Thursday morning. 

 

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Book now: Flights to Tahiti on major sale

The Points Guy 

Though winter is in full swing (I write this as it’s snowing outside), here’s an opportunity to book a last-minute getaway to a warm-weather destination — and the beaches of Tahiti sound oh-so-good right about now.

Round-trip flights to Papeete, the capital of French Polynesia, start at just $551 from Los Angeles. Flights are also available from the San Francisco Bay Area and Seattle for less than $720, some of the lowest prices we’ve seen on this route.

These flights are for trips this month and in February, so what are you waiting for?

Deal basics

SCOTT’S CHEAP FLIGHTS

Airlines: Air France, Delta and United.
Routes: From Los Angeles; Oakland, California; San Francisco; and Seattle to Papeete, Tahiti.
How to book: Browse Google Flights and book directly with the airline.
Travel dates: January-February.
Book by: Two-three days.

Scott’s Cheap Flights originally sent out this deal. The site sends deals up to 90% off via its Premium membership, which users can try for free for 14 days and then costs $49 per year. You can also upgrade to the Elite tier for $199 per year and receive all the Premium deals plus premium economy, business-class and first-class alerts.

Sample flights

This deal only includes flights from the West Coast. Since the deal is so good, it may be worth booking a domestic flight to one of the West Coast airports first in order to reach Tahiti. At the time of publication, the following round-trip flights to Faaa International Airport (PPT) are available:

From Los Angeles International Airport (LAX), starting at $551.
From San Francisco International Airport (SFO), starting at $558.
From Oakland International Airport (OAK), starting at $603.
From Seattle-Tacoma International Airport (SEA), starting at $716.

Flights from LAX, OAK and SEA are available on Delta and Air France, while those from SEA and SFO are also available on United.

GOOGLE FLIGHTS

Related: Complete guide to sailing from Papeete, Tahiti, French Polynesia

Note that flights from OAK and SEA will likely include a layover at LAX.

These fares are for the carrier’s equivalent of basic economy, which includes one free carry-on but charges between $55 and $60 (each way) for your first checked bag. Most basic economy tickets cannot be changed and are nonrefundable, but they can be canceled for a fee. So, be sure to check the terms of your specific fare type when booking.

Maximize your purchase

If you book this deal, don’t forget to use a credit card that earns bonus points on airfare purchases, such as The Platinum Card® from American Express (5 points per dollar on airfare booked directly with the airline or through American Express Travel, on up to $500,000 on these purchases per calendar year), Citi Prestige® Card (5 points per dollar on airfare),  Citi Premier® Card, Chase Sapphire Reserve (3 points per dollar on airfare), American Express® Gold Card (3 points per dollar on airfare) or the Chase Sapphire Preferred Card (2 points per dollar on travel).

Check out this post for more on maximizing airfare purchases.

The information for the Citi Prestige Card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

Bottom line

With flights to this route normally exceeding $1,300 round-trip, this is a fantastic deal.

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What Is the January Effect? Is It Real?

TheStreet 

When the calendar turns to January, some investors believe the market will rally.

View more by pearleye from GettyImages Signature

What Is the January Effect?

Does the stock market make New Year’s Resolutions? Looking closely at its performance in January, some investors might say yes.

That’s because some believe that an anomaly happens in the markets during the first month of the year. It’s when prices of small-cap stocks, in particular, having declined in late December, rise again in early January, spurring the name, the “January Effect.”

This, of course, would spell opportunity for investors. But is the January Effect real?

What Are the Origins of the January Effect?

The January Effect was first noticed by an investment banker named Sidney B. Watchel in 1942. Watchel observed that, since 1925, small-cap stocks not only tended to rise in January, but they also had consistently outperformed large-caps that month.

Other studies confirmed the phenomenon. One study, which accounted for a 70-year stretch of market performance between 1904 and 1974, concluded that small-cap stock returns were five times greater than average in January. Small caps were particularly affected because they were characterized as having less liquidity than mid-cap or large-cap stocks, thus in the event that investors bought or sold shares en masse, their price swings would be quite dramatic.

Another study by Salomon Smith Barney examined more contemporary stock market performance between 1972 and 2000. It found that small caps (as measured by the Russell 2000 Index) still outperformed large caps (as measured by the Russell 1000 Index) in January, but by a much smaller margin—just 0.82%.

Many believe that once the January Effect became widely known, the market simply adjusted to it, and it all but disappeared.

4 Possible Causes of the January Effect

There are several possible explanations for the January Effect, including the following.

Tax-Loss Harvesting

In the past, individual investors or traders would sell losing stocks before December 31 so that they could claim capital losses and significantly reduce their taxable income. Then in January, they would actually buy back the stock in anticipation of future growth. With the advent of tax-sheltered retirement accounts like IRAs and 401(k)s, however, this practice has become much less common.

Window Dressing

“Window dressing” is a practice performed by institutional investors, such as mutual fund managers. It involves buying more shares of top-performing stocks and eliminating the losers by December 31 in order to make their year-end reports look attractive. How can this affect the markets? When these big traders dump their shares, they cause stock prices to decline. This, in turn, can inspire other investors to get in at a discount, thus pushing prices higher in January.

Year-End Bonuses

Year-end bonuses are yet another possible reason behind the January Effect, as employees might simply be surprised to receive extra income at the end of the year and decide to invest it in January.

Investor Sentiment

Perhaps one of the best explanations behind the January Effect could simply be investor sentiment: As a new year begins, investors are more optimistic about the future—and their buying patterns at the beginning of the year versus its end may demonstrate as much.

After all, economist John Maynard Keynes famously coined the phrase “animal spirits” to describe the herd mentality that investors often assume. When magnified millions of times for every investor trading the markets, emotion can actually fuel bubbles, rallies, sell-offs, and even capitulation.

Critiques of the January Effect

The January Effect is highly debated. For one, calendar-based fluctuations like the January Effect could be a sign of an inefficient market, indicating that investors are selling or buying stocks based on external concerns rather than the companies’ underlying fundamentals.

Other market theorists argue that modern markets work too efficiently for the January Effect to significantly impact trading, as investors would anticipate this effect and would then buy stocks as other investors offloaded them in December, effectively canceling each other out.

Still another famous investor, Burton Malkiel, author of A Random Walk Down Wall Street, believes that the January Effect does not provide investors with meaningful opportunities for profit-making because of the fact that the very small gains modern investors might see basically get erased by the transaction costs involved in placing said trades.

So, Is the January Effect Real? Or Is It More Like Santa Claus and the Easter Bunny?

The truth seems to be somewhere in the middle. While the January Effect no longer appears as pronounced as it was in the mid-20th century when it was written about, some data still supports the idea of a December/January fluctuation. Exactly how and when investors act upon this information may make all the difference.

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Tech jobs were hit the hardest by layoffs last year

US Top News and Analysis 

Peopleimages.com | Getty Images

The technology industry led job cuts in 2022, totaling more than 97,000 announced across the sector, according to a report released Thursday from outplacement services firm Challenger, Gray & Christmas. That’s up 649% from the nearly 13,000 tech jobs that were cut in 2021, the report said.

Overall last year, employers across industries announced plans to cut nearly 364,000 jobs, according to the report — a 13% increase from the year prior. Still, the figure represents a relatively low number of job cuts in a year. Challenger said it’s the second-lowest recorded total job cut announcements since it began tracking them in 1993, with the lowest occurring in 2021.

The report comes as economists have warned of the potential for a recession this year, which has put both workers and employers on edge. On Wednesday, Amazon CEO Andy Jassy confirmed the company plans to cut more than 18,000 jobs, which is even higher than the company previously said it would eliminate. Salesforce also announced on Wednesday it would cut 10% of its staff, or about 7,000 workers.

“The overall economy is still creating jobs, though employers appear to be actively planning for a downturn,” Andrew Challenger, senior vice president of the outplacement firm said in a statement alongside the report. “Hiring has slowed as companies take a cautious approach entering 2023.”

Tech companies, which grew rapidly in the early part of the pandemic as services and communication moved almost entirely online, have announced the bulk of job cuts in the past year as people increasingly return to pre-pandemic habits.

The fintech industry has been hit especially hard as cryptocurrencies have faced a downturn and recent scandals have rocked the sector. The more than 10,000 fintech job cuts in 2022 represents a 1,670% increase from the 529 announced in 2021, Challenger said.

Cost cutting was cited as the top reason for the moves last year, and accounted for more than 82,000 of the announced job reductions, according to Challenger. Market or economic conditions were cited in connection to nearly 60,000 of the layoffs.

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WATCH: Tech layoffs and hiring freezes continue to mount. Here’s a wrap-up of some of the biggest names affected

VIDEO1:4601:46
Tech layoffs and hiring freezes continue to mount. Here’s a wrap-up of some of the biggest names hit

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Biden’s regulators propose banning non-competes

Politics, Policy, Political News Top Stories 

The Federal Trade Commission on Thursday kicked off the process for regulating non-compete clauses in employment agreements, issuing a proposed rule that would largely ban the practice.

Under the proposal, the FTC would still allow employers other legal avenues to protect trade secrets and other sensitive information. However, those non-disclosure agreements cannot be so broadly construed as to functionally serve as non-compete clauses, according to the agency.

“We’re not talking about your run-of-the-mill NDA,” Elizabeth Wilkins, the FTC’s director of policy planning, said on a press call Wednesday previewing the action. “We are looking at things where an employer is trying to get around the rule with other words.”

The FTC is also looking to prohibit other types of employment provisions under the rule that have the same effect as a non-compete. That could include requirements to repay training expenses if a worker leaves a company within a certain time period.

The FTC’s proposal would extend to nearly all work arrangements, including unpaid or volunteer positions, apprentices and independent contractors, in addition to regular employees.

The proposal fulfills a key pillar of President Joe Biden’s competition policy agenda from last year. In a sprawling executive order from July 2021 the White House directed the entirety of the federal government to prioritize work involving competition policy and enforcement, particularly in labor markets. That specifically included a rulemaking effort by the FTC on non-compete clauses.

Non-competes are a “widespread and often exploitative practice that suppresses wages, hampers innovation, and blocks entrepreneurs from starting new businesses,” the agency said in a statement.

The FTC estimates that banning the practice could put close to $300 billion back in the pockets of workers each year, as well as boost the career opportunities for about 30 million Americans.

“It is an individual problem for a worker, but it is an aggregate problem for the economy,” FTC Chair Lina Khan told reporters on Wednesday’s call.

In written statements, Khan and Commissioner Rebecca Kelly Slaughter, highlighted not only the effect of non-competes on wages but also on innovation and new business formation.

“This in turn reduces product quality while raising prices,” Khan wrote, saying that in the health care sector alone, banning non-competes could lower consumer prices by as much as $150 billion each year.

The FTC commissioners voted 3-1 along partisan lines to issue the proposal, with the agency’s lone Republican commissioner Christine Wilson voting no.

In a written statement, Wilson said her fellow commissioners are departing “from hundreds of years of legal precedent that employs a fact-specific inquiry into whether a non-compete clause is unreasonable,” and instead is proposing a near-blanket ban on the practice. Wilson also questioned whether the agency has the constitutional authority to issue the rules, and said a recent U.S. Supreme Court opinion limiting the Environmental Protection Agency’s authority dooms the FTC’s efforts on non-competes.

The U.S. Chamber of Commerce also criticized the proposal, saying the agency lacks authority to issue the rule and that it ignores the benefits of the practice.

“Attempting to ban noncompete clauses in all employment circumstances overturns well-established state laws which have long governed their use and ignores the fact that, when appropriately used, noncompete agreements are an important tool in fostering innovation and preserving competition,” Sean Heather, U.S. Chamber of Commerce senior vice president for international regulatory affairs and antitrust, said in a statement.

According to the other three commissioners, in many cases, employers leverage their outsized bargaining power to compel workers into signing these contracts, such as by making them a condition for receiving severance pay or part of an employment agreement.

“For too long, coercive noncompete agreements have unfairly denied millions of working people the freedom to change jobs, negotiate for better pay, and start new businesses,” Sarah Miller, who heads up the antimonopoly group American Economic Liberties Project, said in a statement.

Khan said that one reason for the rulemaking was the increased utilization of non-compete agreements across a broader segment of the American workforce in recent decades.

“These are no longer just being used in the boardroom, but are now basically proliferated across the economy,” she said.

The FTC estimates that roughly one-in-five workers are subject to non-competes, Khan said.

In a tweet, Sen. Ron Wyden (D-Ore.), who chair’s the Senate Finance Committee, said “non-compete clauses are anti-worker and anti-American, plain and simple. I’m glad the [FTC] is moving to end this practice and level the playing field for American workers.”

As a precursor, the FTC on Wednesday announced enforcement actions against two glass companies and a pair of related security firms over their use of non-competes.

States including California, North Dakota and Oklahoma, as well as the District of Columbia have already outlawed the use of non-compete agreements, and other states restrict their use among certain groups of workers.

The process to write and implement a rule can be lengthy, and includes public comments and potential legal challenges. A final rule will likely not be in place until at least 2024. The FTC will open the proposal for two months of public comments and the rule will take effect six months after a final version is published.

The FTC frequently uses its rulemaking authority to enforce its consumer protection mandate, including recently proposed regulations governing privacy and data security practices. The last time the agency issued a competition rule, however, was in 1967, governing “discriminatory Practices in Men’s and Boys’ Tailored Clothing Industry.” The rule was never enforced, and rescinded in 1994.

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Watch here: Insider At CES — How Emerging Technologies Enable the Future of Work

Business Insider 

Go on the ground at CES with Insider reporters at this virtual event, designed for IT decision makers looking to address global challenges in the future of work.
Learn how organizations are implementing innovative tech to keep employees engaged and securely connected, and which next-gen technologies have the potential for global transformation.
This live virtual event is presented by Verizon in partnership with Lenovo.

Watch event

 

Speakers include

Alvina Antar
CIO, OktaSteve Hatfield
Global Future of Work Leader, DeloitteVijay Paulrajan
Vice President of Business Devices, Verizon Business GroupPayaal Zaveri
Senior Tech Reporter, Business Insider

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Innovation at Work – InsiderIntroducing the Lenovo ThinkPad X13s with Verizon 5GSolutions for enabling your hybrid workforce Lenovo Research Report: Human-centered insights to fuel IT’s vision

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