FTC bans noncompetes, Haiti, and cicada salads.

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Big Stories

Federal Trade Commission bans noncompetes

The FTC voted 3-2 to ban noncompete agreements on Tuesday.

• Noncompete agreements prevent employees from working for competitors or starting a competing business after they leave a job. Noncompetes were once used to keep executives from switching companies and taking trade secrets with them. Now, they are more common with even low-wage workers and doctors.

• Pro-business groups, including the US Chamber of Commerce, argue the FTC overstepped its authority and that noncompete agreements are crucial for safeguarding confidential business information. They plan to sue to block the rule's implementation.

• The Biden administration, Democrats, and labor unions strongly support the ban. They believe noncompete agreements restrict worker mobility, decrease wages, and stifle competition. The FTC estimates the ban could increase worker earnings by nearly $300 billion annually.

DOJ settles with Larry Nassar victims

The Justice Department (DOJ) agreed to pay $138.7 million to settle claims from 139 victims of Larry Nassar's sexual abuse.

• These claims stemmed from the FBI's mishandling of the initial investigation into Nassar. This settlement follows years of advocacy by victims, including Olympic gymnasts Simone Biles, Aly Raisman, and McKayla Maroney, who accused the FBI of failing to take their allegations against Nassar seriously. Nassar, a doctor for both USA Gymnastics and Michigan State University, sexually abused hundreds of young athletes for nearly two decades.

• The DOJ's settlement comes after their own investigation found the FBI mishandled the case and violated protocol. This included failing to respond to the allegations with the urgency they deserved and making fundamental errors throughout the investigation.

• While the DOJ previously decided not to press charges against the individual FBI agents involved, this settlement offers some financial compensation to the victims. This settlement is separate from the $380 million settlement reached between USA Gymnastics and hundreds of Nassar's victims in 2021.

Haiti descends into chaos

Haiti's capital, Port-au-Prince, is in a state of crisis due to gang violence.

• Residents are taking desperate measures to stay safe, including installing metal barricades and stockpiling supplies. Gangs control 80% of the city and have launched coordinated attacks on critical infrastructure.

• The violence has crippled daily life. People are afraid to leave their homes, schools and businesses are closed, and there is a shortage of basic necessities. The situation is so bad that some have likened it to an "open-air prison."

• The violence has also displaced a large number of people, with over 95,000 fleeing Port-au-Prince in just one month. Those who flee face dangers along the way, with reports of gang rape and killings.

• There is little hope for a quick end to the crisis. The government is largely absent, and a recently formed transitional council is unlikely to solve the problem. Meanwhile, Haiti is facing a growing hunger crisis, with nearly 2 million people on the verge of famine.

Little Stories

• The Tennessee House voted along party lines to allow some teachers to carry concealed guns in schools. This strengthens Republican efforts to loosen gun restrictions despite protests and pleas for stricter laws after a recent school shooting. The bill now goes to the governor for signing. (More)

• Russia is rapidly capturing territory in eastern Ukraine, likely racing to take ground before Western military aid arrives. Footage shows Russia capturing a village and advancing 5km in just 10 days. To counter this, Ukraine suspended some consular services for men abroad to encourage them to return and fight. (More)

• The Department of Labor is raising the salary threshold for overtime eligibility in two stages. By January 2025, an estimated 4 million more workers will qualify, resulting in a $1.5 billion annual transfer from employers to workers through overtime or salary bumps. (More)

• Tesla's stock soared despite a 55% plunge in profits this quarter. Investors responded to the company's plan to prioritize production of new, cheaper electric vehicles, including the rumored $25,000 Model 2. Tesla is pushing up its previous timeline for these models. (More)

• Wall Street Journal reporter Evan Gershkovich will remain in jail in Russia until at least late June after a Moscow court rejected his appeal to be released while he awaits trial on espionage charges. Gershkovich has been detained since March 2023 and has repeatedly been denied bail. (More)

Extra Credit

Watch how glass is made. 

Visualizing the average lifespan of mammals. 

US News unveils this year’s best hybrid and elective vehicles. 

New Orleans restaurant offers a cicada salad.