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Laws barring noncompete clauses spreading

businessinsurance.com

61–70 of 224 posts

Re: Laws barring noncompete clauses spreading

#61

Good riddance to this form of wage suppression. Let's do forced arbitration next.

For some reason (I never dug deeper), my friend who is an attorney said she prefers arbitration. Maybe because she already is an attorney? The only thing I can think of is that it is more expedient and having seen behind the curtain the talk of biased arbiters (biased towards the Goliath) are exaggerated. But if anyone can opine I'm all ears.

Re: Laws barring noncompete clauses spreading

#63
In the US these clauses are almost never enforceable and simply serve as a chilling effect. There is a fundamental issue with non-competes that if they prevent a person's well being they can't be enforced so if a person secures a job that would violate their non-compete the enforcement of their non-compete would cause them to lose their income. This is considered a hardship so enforcement of a non-compete clause requires a clear demonstration that other work would be available which in many cases is hard to do in the modern world since it'll often require there existing a genuine offer of work to the individual - offers are normally private so they can be hard to discover but, additionally, simply demonstrating the availability and presence of job listings is usually insufficient because hiring processes are a lot more complex today then in 1800 when some dude would hand you a shovel and offer you a dime at the end of the day.

I applaud their death - they are fundamentally bad for employees.

Re: Laws barring noncompete clauses spreading

#64
post #58

Earlier quoted context omitted.

1) That would be IP theft, and is already covered by other laws. 2) That is the problem I think this solves: retain your key employees. Maybe pay them a bit better than that 2% annual raise.

Starting up a consultancy to do installation of your former employer's software for clients isn't IP theft. If I worked for Atlassian and then created a company that did consulting for how to install Jira and and organize workflows - there's no IP theft involved there. Creating a new competitor isn't about retaining employees. Consider the situation of https://en.wikipedia.org/wiki/Rose_Blumkin > In 1989, six years a…

I fail to see what's wrong with this. Not trolling, what actual harm is being done here? it should be priced into the risk of acquiring the company right?

Re: Laws barring noncompete clauses spreading

#65

> Colorado employers have expressed frustration with the new law, said Carrie Hoffman, a partner with Foley & Lardner LLP in Dallas. “Nobody likes being told when they’re about to hire someone” that that person does not make enough to be eligible for a noncompete, she said. Pay up or shut up. It's that fucking simple, and these abusive employers should not only be grateful that these clauses haven't been outlawed out…

[deleted]

Re: Laws barring noncompete clauses spreading

#67
post #58

Earlier quoted context omitted.

1) That would be IP theft, and is already covered by other laws. 2) That is the problem I think this solves: retain your key employees. Maybe pay them a bit better than that 2% annual raise.

Starting up a consultancy to do installation of your former employer's software for clients isn't IP theft. If I worked for Atlassian and then created a company that did consulting for how to install Jira and and organize workflows - there's no IP theft involved there. Creating a new competitor isn't about retaining employees. Consider the situation of https://en.wikipedia.org/wiki/Rose_Blumkin > In 1989, six years a…

> If I worked for Atlassian and then created a company that did consulting for how to install Jira and and organize workflows - there's no IP theft involved there.

That also seems like a very silly thing to prohibit in the first place, since Atlassian's getting paid either way in that case.

Re: Laws barring noncompete clauses spreading

#68

Earlier quoted context omitted.

It jumped the shark a few years back when Jimmy Johns tried to force their "sandwich artists" to sign non-competes.

Does JJ refer to their employees as sandwich artists too? I thought that was just a Subway thing. But yeah, beyond ridiculous, as if a JJ employee is going to leak some crazy trade secret to Subway or whoever.

I assume the "sandwich artist" title is an allusion to that old saying - y'know because they pay their employees so little that they're starving.

Re: Laws barring noncompete clauses spreading

#69
noncompete clauses are good if you actually get compensation for not working at a competitor. e.g. firms paying you a decent salary for ~2 years after your employment is over. signing a blanket noncompete without compensation is the problem.

Re: Laws barring noncompete clauses spreading

#70
post #27

Earlier quoted context omitted.

Really, which laws are those? The only ones I’m aware of would be trade secret laws, but they’re dubiously applicable to bare customer contact lists. You can make contractual restrictions of course (company property), but good luck being able to prove they actually took it unless they’re really dumb. Merely contacting all, or many, customers for instance wouldn’t prove it. Being able to show they work for competitor…

lol, no. Confidential business information is an area heavily protected by law. Customer lists are the canonical example. It’s much easier to win this kind of civil suit than a criminal case. The court can absolutely crush a business that is founded in this manner to compensate the former employer.

Then why didn't Dunder Mifflin sue the Michael Scott Paper Company?
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