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The case for banning non-competes

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241–250 of 338 posts

Re: The case for banning non-competes

#241
Non-competes are pretty much banned in the only place that matters for tech (California). It's one of the factor that drove the emergence of Silicon Valley.

If your local state/country doesn't have California like laws, maybe it's an indicator it's time to jump ship!

Re: The case for banning non-competes

#242

Earlier quoted context omitted.

> Obviously, if I work as a developer making a stock trading app, I shouldn't be making a competing stock trading app after hours. Why is that obvious? If I work as a studio musician can I also be working on my own album after hours?

Why is that obvious? Because it creates a clear conflict of interest; stock trading apps compete with each other much more directly than do music albums.

> Because it creates a clear conflict of interest

If you're not doing your job anymore, or are sabotaging your dayjob, then it's an employment issue. NCCs have no reason whatsoever to enter the equation before or after.

Re: The case for banning non-competes

#243
I am intrigued by the framing of the 'banning' of non-competes as regulatory intervention. It seems to me like we would be asking the court to refuse to enforce a contract. But this refusal manifests as a distinct lack of intervention on the part of regulators.

I.E. prior to this 'intervention' you could be hauled to court and/or jail for failure to meet a contractual obligation. Post 'intervention' nothing happens and you simply continue to search for a new job as you always had.

I understand that in our given legal framework every change must be some kind of positive action, but it seems odd to me to frame it in conversation (as this article did) as a positive action rather than negative one which is how it actually manifests.

I'll just finish by saying that I agree with the sentiment that non-competes should be unenforceable. If you do have company secrets an NDA has long standing precedent and is less intrusive.

Re: The case for banning non-competes

#244

Had a fun one just happen to me in the last few days. I got contacted by an agent out of the blue. "Hey Sean we've got a role that you seem perfect for, just sign this NDA so we can talk." I look at the NDA and it includes a noncompete for the duration of the project + 12 months after. The nda is also not mutual so the noncompete and nondisclosure is only binding on me not the other party. In fact I don't even know w…

Quote them a rate that's 5x what you normally go for and see if they bite. Add a clause where you need to be compensated for the complete duration of the non-compete too. See if they respond.

Re: The case for banning non-competes

#245
There are a lot of things you could do to let the labour market behave more like a free market, like for instance mandatory wage ranges on job postings.

The problem is that a lot of people in power would lose from this and manage to prevent it from happening.

Re: The case for banning non-competes

#246
post #215

Earlier quoted context omitted.

Maybe we could keep the protections for labor and drop the many additional protections for landowners.

I wonder if that would be necessary. San Francisco is kind of a special case as a small peninsula. That puts limits on the ways it can grow. You could probably build more housing units but you'll rapidly run into limits on streets, utilities, schools, etc. I don't know how much the issue is with the rest of Silicon Valley. There used to be a lot of undeveloped area not too far from Palo Alto. Texas may want to avoid…

>I wonder if that would be necessary. San Francisco is kind of a special case as a small peninsula. That puts limits on the ways it can grow. You could probably build more housing units but you'll rapidly run into limits on streets, utilities, schools, etc.

I'm going to push back on this. Manhattan is less than half the size of San Francisco and has nearly four times the population density. The Bronx is roughly the same size and has double the population density. It isn't that San Francisco can't expand, it is that it doesn't want to.

Re: The case for banning non-competes

#247

Earlier quoted context omitted.

My offer letter explicitly stated that starting work (and accepting the stated pay) constituted agreeing to all the docs sent over, unless explicitly agreed upon otherwise. I can't wait to have enough savings to quit and move to california where the employee protections are so much higher.

It's interesting to hear you say that, moments after coming from a thread where people were explaining why California is so terrible. I feel like the symbol of the 2020s is Chesterton's Fence[1], people chafing against restrictions and then having to reinvent them. I'm sure that some people are indeed fleeing California, and will then immediately start reinventing it. Not that that's necessarily a bad thing. The rein…

What's strange to me is how people, particularly those in California, think that banning non-competes were somehow a California idea or that CA is the only state that does that. Yes banning non-competes is one of the things CA got right. People who complain are concerned about the things it got wrong. The idea that if you want non-competes then you must also accept insane regulatory burdens isn't really tenable when you look at the other states that ban non-competes and don't suffer from the same problems as California. There are low-regulation red states like Montana, Oklahoma, and North Dakota that have the same non-compete bans that CA has and many other states such as Utah and Texas place severe limits on them, whereas there are high-regulation states such as Massachusetts that allow non-competes.

Please don't try to turn the non-compete issue into a california good-or-bad issue because it's just not a california thing.

Re: The case for banning non-competes

#248

Earlier quoted context omitted.

> Obviously, if I work as a developer making a stock trading app, I shouldn't be making a competing stock trading app after hours. For rank-and-file employees, I don't think this is so obvious. It presents a potential conflict of interest, sure, but if I'm fulfilling my job responsibilities and not holding anything back or stealing nonpublic info/trade secrets/whatever then what's the problem? It shouldn't be the mer…

It presents a potential conflict of interest, sure, but if I'm fulfilling my job responsibilities and not holding anything back or stealing nonpublic info/trade secrets/whatever then what's the problem? This is a bit like "sure I'm dating one of my direct reports, but as long as I don't show them any special treatment what's the problem?". In both cases even if you genuinely believe what you're saying, it causes your…

My incentives are never going to be in perfect alignment with my employer: I work for them to build my own wealth, and they employ me to build theirs. The foundation of the employer-employee relationship is that each provides the other with a means to realize their incentive in a way that's mutually satisfactory, if asymmetric. If this relationship is out of balance, either party is free to engage in negotiations or terminate the relationship.

Employers have concrete strategies available to them for maintaining their position in this negotiated relationship. Typically they will have a performance review process, which should have no problem determining whether they're getting what they're paying me for. Separately, the legal system we're both subject to protects legitimate intellectual property perfectly well without overbearing noncompetes and invention assignments; cases of physical property theft, etc., are also covered.

So what's the problem? Why should employers have additional rights to make sure that, if the situation is ever remotely muddy, it goes their way by default?

(I say should in the moral sense, and the broader sense of socioeconomic utility. In a might-makes-right frame, obviously they should have it simply because they are strong enough to take it. That is what we have right now, in practice.)

Re: The case for banning non-competes

#249
hopefully they die sooner, rather than later. ive never signed one, never will.

literally walked away from business deals and job contracts because of this.

try to restrict me into the future beyond our agreement and you are not worth my time. don't tell me i cant feed my kids the best way i know how and we can always come to a deal, otherwise you are not my friend. i aint that desperate to make others wealthy. :X

Re: The case for banning non-competes

#250

There's so much wrong here. > The main idea of the non-compete agreement is that employers want to stop people from walking off the job and taking trade secrets to rival companies. If companies weren’t able to secure those protections, they’d need to pay lower salaries, and we’d all be worse off. No. If companies couldn't coerce workers to stay with them against their will, then they would have to pay better and be b…

> A just basically killed off non-competes (1 year limit, narrow scope both in terms of work and geography).

That hardly seems like killed-off. In my experience, this exact sort of thing has been what I have been able to get, AT BEST, companies that required non-competes to change to, and even THEN, they were hugely disruptive. It's one of the reasons that I have nearly three decades of experience and almost never any two companies in a row in the same vertical.

This is categorically not killing off non-competes. It's barely even impacting them. It's just politically-correct "non-compete killing theater."

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