U.S. companies would no longer be able to bar employees from taking jobs with competitors under a rule approved by a federal agency Tuesday, though the rule is sure to be challenged in court. The Federal Trade Commission voted Tuesday 3-2 to ban measures known as noncompete agreements, which bar workers from jumping to or starting competing companies for a prescribed period of time. According to the FTC, 30 million people — roughly one in five workers — are now subject to such restrictions. The Biden administration has taken aim at noncompete measures, which are commonly associated with high-level executives at technology and financial companies but in recent years have also ensnared lower-paid workers, such as security guards and sandwich-shop employees. A 2021 study by the Federal Reserve Bank of Minneapolis found that more than one in 10 workers who earn $20 or less an hour are covered by noncompete agreements. When it proposed the ban in January 2023, FTC officials asserted that noncompete agreements harm workers by reducing their ability to switch jobs for higher pay, a step that often provides most workers with their biggest pay increases. By reducing overall churn in the job market, the agency argued, the measures also disadvantage workers who aren’t covered by them because fewer jobs become available as fewer people leave their positions. They can also hurt the economy overall by limiting the ability of other businesses to hire needed employees, the FTC said. The rule, which doesn’t apply to workers at non-profits, is to take effect in four months unless it is blocked by legal challenges. “Noncompete clauses keep wages low, suppress new ideas and rob the American economy of dynamism,” FTC Chair Lina Khan said. “We heard from employees who, because of noncompetes, were stuck in abusive workplaces.” Some doctors, she added, have been prevented from practicing medicine after leaving practices. Business groups have criticized the measure as casting too wide a net by blocking nearly all noncompetes. They argue that highly paid executives are often able to win greater pay in return for accepting a noncompete. “It’ll represent a sea change,” said Amanda Sonneborn, a partner at King & Spalding in Chicago who represents employers that use noncompetes. “They don’t want somebody to go to a competitor and take their customer list or take their information about their business strategy to that competitor.” But Alexander Hertzel-Fernandez, a professor at Columbia University who is a former Biden administration Labor Department official, argued that lower-income workers don’t have the ability to negotiate over such provisions. “When they get their job offer,” he said, “it’s really a take-it-or-leave-it-as-a-whole,” he said. The U.S. Chamber of Commerce said Tuesday that it will file a lawsuit to block the rule. It accused the FTC of overstepping its authority. “Noncompete agreements are either upheld or dismissed under well-established state laws governing their use,” said Suzanne Clark, the chamber’s CEO. “Yet today, three unelected commissioners have unilaterally decided they have the authority to declare what’s a legitimate business decision and what’s not by moving to ban noncompete agreements in all sectors of the economy.” Two Republican appointees to the FTC, Melissa Holyoak and Andrew Ferguson, voted against the proposal. They asserted that the agency was exceeding its authority by approving such a sweeping rule. Noncompete agreements are banned in three states, including California, and some opponents of noncompetes argue that California’s ban has been a key contributor to that state’s innovative tech economy. John Lettieri, CEO of the Economic Innovation Group, a tech-backed think tank, argues that the ability of early innovators to leave one company and start a competitor was key to the development of the semiconductor industry. “The birth of so many important foundational companies could not have happened, at least not in the same way or on the same timeline and definitely not in the same place, had it not been for the ability of entrepreneurs to spin out, start their own companies, or go to a better company,” Lettieri said. The White House has been stepping up its efforts to protect workers as the presidential campaign heats up. On Tuesday, the Labor Department issued a rule that would guarantee overtime pay for more lower-paid workers. The rule would increase the required minimum salary level to exempt an employee from overtime pay, from about $35,600 currently to nearly $43,900 effective July 1 and $58,700 by Jan. 1, 2025. Companies will be required to pay overtime for workers below those thresholds who work more than 40 hours a week. “This rule will restore the promise to workers that if you work more than 40 hours in a week, you should be paid more for that time,” said Acting Labor Secretary Julie Su.    

Chubb Ltd. posted higher first-quarter net income on higher income in both the life and property/casualty segments and a double-digit rise in net investment income. First-quarter net income rose to $2.14 billion from $1.89 billion a year ago. Consolidated net premiums written rose to $12.22 billion from $10.71 billion. The property/casualty combined ratio improved to 86.0 from 86.3. "Core operating income was up double-digit, driven by (property/casualty) underwriting income up over 15% with a published combined ratio of 86, investment income up more than 23%, and life insurance income up almost 10%," Evan G. Greenberg, chairman and chief executive officer, said in a statement. "We produced double-digit premium revenue growth from across the globe with strong results in our commercial and consumer P&C and Asia life businesses." Chubb recently said it agreed to acquire Healthy Paws, a U.S.-based managing general agent specializing in pet insurance, from Aon plc. The deal will allow Chubb to expand in a niche market with substantial growth potential, the insurer said at the time. Terms of the transaction were not disclosed, Chubb said. It is expected to close in the second quarter. Underwriting entities of Chubb Ltd. have current Best's Financial Strength Ratings ranging from A++ (Superior) to A- (Excellent).    

Orion180, a leading innovator in the insurance industry, is pleased to announce the expansion of its homeowners insurance services to Arizona. This marks a significant milestone as the company's first venture into the Western United States, reinforcing its mission to establish a comprehensive nationwide presence. Orion180 currently operates in Alabama, Arizona, Georgia, Indiana, Mississippi, North Carolina and South Carolina through its two insurance carriers. The company provides insurance solutions through its admitted carrier, Orion180 Select, in noncoastal areas and its surplus lines insurance carrier, Orion180 Insurance Co., in coastal areas. Coverage varies by state. Through Orion180 Select Insurance Co., an admitted insurance carrier domiciled in Indiana, this company aims to meet the unique insurance needs of homeowners in the state of Arizona. Kenneth Gregg, CEO and founder of Orion180, expressed his enthusiasm about the new market entry: “Our expansion into Arizona signifies a critical step forward in our strategic efforts to serve a national customer base. This is our inaugural entry into the Western U.S., and it accentuates our planned expansion into Florida, Ohio, and several other markets in need. We are committed to providing innovative, reliable insurance solutions in new and diverse markets.” Gregg further emphasized the strategic nature of this expansion: “Arizona is not just a new market for us; it represents a bridge to broader national coverage and a testament to our adaptability and determination to meet the evolving needs of homeowners across America. We are eager to establish a robust presence in Arizona and look forward to building lasting partnerships with homeowners and independent agents within the state.” Independent agents interested in partnering with Orion180 to offer insurance coverages in Indiana or Georgia can find more information by visiting Orion180.com. About Orion180 Orion180 is a people-focused, technology-driven insurance brand that offers proprietary technology, real-time data, and straightforward underwriting practices, enabling independent insurance agents to provide their customers a premier insurance experience. Orion180’s operating companies are:

• Orion180 Insurance Co., a surplus lines (non-admitted) insurance company domiciled in Indiana and doing business in Alabama, Georgia, Mississippi, North Carolina and South Carolina.
• Orion180 Select Insurance Co., an admitted insurance company domiciled in Indiana that is approved to provide coverage in Alabama, Florida, Indiana, Mississippi and Georgia.
• Orion180 Insurance Services LLC, a managing general underwriter that partners with carriers and reinsurers to deliver homeowners insurance and other insurance solutions.

Orion180 has developed its own proprietary mobile application and technology platform, MY180, while also supporting third-party data integrations with insurance industry partners.