Non-Competes being legal is only acceptable I think if the worker will continued being paid for the period of the non-compete. I can see reasons that non-competes exist, but those reasons don't really make sense in a world where patents and trademarks also exist. The fact that they are essentially illegal in California, and California's economy works shows that they are unnecessary and also don't hinder technological development.
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
#22Press release from the FTC (and no paywall): https://www.ftc.gov/news-events/news/press-releases/2023/01/...
Re: U.S. moves to bar noncompete agreements in labor contracts
#23Earlier quoted context omitted.
as opposed to joining a company, get trained, get laid off when the economy dips, forced to be unemployed
so maybe regulators should introduce nullifying noncompetes with certain cases, not nullifying them in every circumstance. but still, they serve an obvious purpose, even if you are laid off by that company. the idea is you are given confidential info that you are not supposed to use because that's unfair competition. not that you're likely to care
> the idea is you are given confidential info that you are not supposed to use because that's unfair competition
This proposal does not nullify NDAs (Non disclosure agreements), from the FTC press release:
"The proposed rule would generally not apply to other types of employment restrictions, like non-disclosure agreements."
There are also exceptions to partners and owners selling a business.
Re: U.S. moves to bar noncompete agreements in labor contracts
#24this seems like a really bad idea. people can just join a company, get trained, then leave. hello corporate espionage.
Noncompetes do not block corporate espionage in any way shape or form.
Re: U.S. moves to bar noncompete agreements in labor contracts
#25I think noncompete clauses have their uses so rather than see them eliminated completely you make a company pay the employee under a noncompete the equivalent salary for the duration. Company wants you to sign a noncompete for five years after you leave? They can pay for you five more years.
Companies that truly need the protections will shell out for it. The ones that include it in their employment contracts because that's just what they do, won't.
Re: U.S. moves to bar noncompete agreements in labor contracts
#26This 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…
> Given the hostility of the current Supreme Court to federal agencies Maybe it's overreach by federal agencies when they create their own law. There is a distinction between authorizing an agency to figure out how to get something done and letting one make new law. Dramatically limiting the power of agencies to make up their own new laws seems like a good thing.
It's good to let agencies make laws if they make good laws. It's bad to let agencies make laws if they make bad laws. The liberal obsession with process is what lets the far right make inroads everywhere, since they don't share it.
Re: U.S. moves to bar noncompete agreements in labor contracts
#27In Germany we have non-competes, however, the employer has to continue paying the ex-employee (a part of) their salary for the non-compete to have any effect.
Re: U.S. moves to bar noncompete agreements in labor contracts
#28this seems like a really bad idea. people can just join a company, get trained, then leave. hello corporate espionage.
Corporate espionage is a crime. You don't need to tack non-competes on top of that.
And if you think the primary purpose of non-competes is to prevent or mitigate corporate espionage, I've got a bridge to sell you.
Re: U.S. moves to bar noncompete agreements in labor contracts
#29Press release from the FTC: https://www.ftc.gov/news-events/news/press-releases/2023/01/...
Re: U.S. moves to bar noncompete agreements in labor contracts
#30Noncompete 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.
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It's already illegal in many states