U.S. moves to bar noncompete agreements in labor contracts
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Re: U.S. moves to bar noncompete agreements in labor contracts
#2I’m surprised it’s taken so long. Companies have abused this practice to an absurd degree. Got a job at a sandwich shop? I guess you are prohibited from getting a different job down the street based on the agreement you signed at the beginning of your employment.
Re: U.S. moves to bar noncompete agreements in labor contracts
#3This is a bigger deal then the title suggests since it appears it would be retroactive and nullify existing non competes
> The commission’s proposal appears to address this issue by requiring employers to withdraw existing noncompetes and to inform workers that they no longer apply. The proposal would also make it illegal for an employer to enter into a noncompete with a worker or to try to do so, or to suggest that a worker is bound by a noncompete when he or she is not.
This is very unclear to me, and seemingly experts, if the FTC has this power, but it would be very far reaching if it were to go into effect. Given the hostility of the current Supreme Court to federal agencies, the pessimist in me says that this would be challenged by an employer go all the way to the supreme court and be used by them to dramatically limit the power of FTC
Re: U.S. moves to bar noncompete agreements in labor contracts
#4I’m surprised it’s taken so long. Companies have abused this practice to an absurd degree. Got a job at a sandwich shop? I guess you are prohibited from getting a different job down the street based on the agreement you signed at the beginning of your employment.
I know here in Colorado they recently passed a law that under a certain pay you cannot be made to sign a noncompete. However it was only like $110k so wasn't going to help many developers.
Re: U.S. moves to bar noncompete agreements in labor contracts
#5this seems like a really bad idea. people can just join a company, get trained, then leave. hello corporate espionage.
Re: U.S. moves to bar noncompete agreements in labor contracts
#6Noncompete clauses for workers is the most anti-american, anti-free-market policy anyone could pull. If workers aren't free to switch to better jobs and at the same time are left to fend off for themselves them the economic system starts to resemble feudalism.
Re: U.S. moves to bar noncompete agreements in labor contracts
#7I agree that noncompetes are bad, but the FTC declaring it without a congressional mandate seems deeply questionable.
Re: U.S. moves to bar noncompete agreements in labor contracts
#8Would prefer this came from Congress rather than the FTC, because I can see at least two different ways this could get sunk from the FTC:
1) The process gets stalled from rollout until 2024, at which point a Republican comes into power, appoints new FTC head, and they roll it back.
2) Companies sue, and SCOTUS rules that this exceeds FTC authority.
But I'll freely concede that there is no way such a bill would ever make it through Congress.
Re: U.S. moves to bar noncompete agreements in labor contracts
#9Definitely one of those obviously broken things that should be stopped. Whatever legitimate usage they theoretically have in practice the vast majority do not protect against a bona fide company risk.
Re: U.S. moves to bar noncompete agreements in labor contracts
#10this seems like a really bad idea. people can just join a company, get trained, then leave. hello corporate espionage.
as opposed to joining a company, get trained, get laid off when the economy dips, forced to be unemployed