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FTC cracks down on companies that impose harmful noncompete restrictions

ftc.gov

61–70 of 189 posts

Re: FTC cracks down on companies that impose harmful noncompete restrictions

#61
Noncompetes should 100% require full-paid gardening leave to be enforceable.

You don't want me ot work for a competitor for a year? Great. You get to pay me full pay and benefits for that year. Let's see how keen companies are to enforce a noncompete then.

Even then they should be limited in scope but without paid gardening leave they should be utterly unenforceable.

Re: FTC cracks down on companies that impose harmful noncompete restrictions

#62

We really need general regulations on non-competes. Bare minimum, it should be required that a company pay you a full salary if they want to block you from seeking employment elsewhere with your skills. If a company really cares that much about stopping competitors from taking advantage of your skillset, they need to be willing to pay up.

On top of that, non-competes shouldn't be enforceable on employees who are laid off or fired. If a company doesn't want to retain an employee, they shouldn't have any say over what that employee does with their skills afterwards.

But then if you want to avoid the non-compete you would just get fired on purpose. Classic unintended consequence of regulation. But I do agree that non-competes should be illegal or somehow highly disincentivized.

Re: FTC cracks down on companies that impose harmful noncompete restrictions

#63

I wish federal law would just abolish non-competes completely. When I gave advanced notice to Tudor Investment that I would be quitting they threatened to fire me with cause so that they could still enforce the non-compete without paying me in accordance with NY state law. And they followed through with their threat, sending me a letter telling me I was being terminated with cause the day I officially quit. To make t…

My spouse's previous employer humiliated them at their job repeatedly, and then went for blood and sued under the non-compete when they took a job elsewhere to stop the abuse. It was totally vindictive and there was really nothing we could do, as they were a multi-billion dollar company and signaled they'd be happy to just keep spending money, even if they were losing, until they bankrupted us. $30,000 in legal fees…

Would you please spontaneously opine on some great and wonderful companies?

Re: FTC cracks down on companies that impose harmful noncompete restrictions

#64
post #55

About 20 years ago I joined a large company in California, where non-compete clauses are essentially disallowed. A few years later, I moved to the company's offices in Washington State, where non-competes are allowed. Before the move I emailed HR and asked if I needed to sign the WA state employment agreement (with that non-compete clause) and they said "no". I saved that email. Forward a decade, I resigned to work f…

It was sad to see WA leaders kowtow to Amazon and Microsoft and limit the non compete ban to those paid under $100k per year. Should have been copy pasted from California law.

Re: FTC cracks down on companies that impose harmful noncompete restrictions

#65
post #63

Earlier quoted context omitted.

My spouse's previous employer humiliated them at their job repeatedly, and then went for blood and sued under the non-compete when they took a job elsewhere to stop the abuse. It was totally vindictive and there was really nothing we could do, as they were a multi-billion dollar company and signaled they'd be happy to just keep spending money, even if they were losing, until they bankrupted us. $30,000 in legal fees…

Would you please spontaneously opine on some great and wonderful companies?

Heh, would love to! But honestly, I was so shell-shocked by the whole thing that I won't even take the chance.

Re: FTC cracks down on companies that impose harmful noncompete restrictions

#66
post #62

Earlier quoted context omitted.

On top of that, non-competes shouldn't be enforceable on employees who are laid off or fired. If a company doesn't want to retain an employee, they shouldn't have any say over what that employee does with their skills afterwards.

But then if you want to avoid the non-compete you would just get fired on purpose. Classic unintended consequence of regulation. But I do agree that non-competes should be illegal or somehow highly disincentivized.

Regardless of the specifics of any regulation, the burden should be on the company and should err on the side of the employee’s benefit. It’s never fair to pit an individuals livelihood against a corporation.

Re: FTC cracks down on companies that impose harmful noncompete restrictions

#68

I worked for (and my wife still works for) a small company that provided a boutique set of engineering services. They had a non compete that was very narrowly tailored and called out by name the competitors that you couldn’t go work for directly (6 months or a year), all of which were also small companies. That sort of non-compete that seems reasonable to me- very specific, time limited, and only for people with actu…

Why do you believe employers should be able to control who you work for when they're no longer paying you?

One easy test for contract fairness I learned from my lawyer is, "Would it make sense if it were symmetric?" So, e.g., would your employer also agree not to go after clients that your next employer has? Or would they agree not to hire any engineers you consider competitive with yourself while you're there and for a year after you leave?

My guess is no.

Re: FTC cracks down on companies that impose harmful noncompete restrictions

#69

Earlier quoted context omitted.

https://dol.ny.gov/system/files/documents/2021/03/ls223.2.pd... Labor Standards cannot accept every claim. Labor Standards will not accept claims if you: - Worked as an executive, administrative, or professional employee and earned over $900 per week

You know that limit was introduced because "most of the benefits of the labor standards board were going to the rich" or some BS like that.

Probably more via underfunding and civil servants wanting to focus on those that need it most.

Re: FTC cracks down on companies that impose harmful noncompete restrictions

#70

We really need general regulations on non-competes. Bare minimum, it should be required that a company pay you a full salary if they want to block you from seeking employment elsewhere with your skills. If a company really cares that much about stopping competitors from taking advantage of your skillset, they need to be willing to pay up.

I posted on the parent as well, but I find non-competes reasonable only if they are time limited (like 6 months to a year), very narrowly tailored and affect a very small number of job openings. I think Google blocking someone from going to Bing ridiculous, but a stoping a move from being the chief of staff at Google Maps to the chief of staff at Bing maps is far more reasonable.
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