The FTC plans to curtail the use of non-compete clauses
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Re: The FTC plans to curtail the use of non-compete clauses
#2Re: The FTC plans to curtail the use of non-compete clauses
#3> California, the global hq of disruptive innovation, goes a step further and bans non-competes altogether. The FTC should do the same, on the grounds that they are anticompetitive.
Re: The FTC plans to curtail the use of non-compete clauses
#4Re: The FTC plans to curtail the use of non-compete clauses
#5The headline here is deceptive. Nothing in the article mentions any plans by "America's trustbusters to curtail the use of non-compete clauses". Rather, this is a short essay about non-competes, explaining why they are a bad idea. The article ends with a call-to-action: > California, the global hq of disruptive innovation, goes a step further and bans non-competes altogether. The FTC should do the same, on the ground…
Re: The FTC plans to curtail the use of non-compete clauses
#6I wouldn't be sad to see the later form survive to be honest - there are a few situations where non-competes may be justified from a business perspective... but I think it's fair for companies to be on the hook for continued compensation at some proportion of the employee's former wage to actually exercise the privilege to deny the employee work in a specific field. But hey - better non-competes die than we allow the current chilling-effect bullshit of overly vague and broad non-competes that are never intended to see the inside of a courtroom.
Re: The FTC plans to curtail the use of non-compete clauses
#7The headline here is deceptive. Nothing in the article mentions any plans by "America's trustbusters to curtail the use of non-compete clauses". Rather, this is a short essay about non-competes, explaining why they are a bad idea. The article ends with a call-to-action: > California, the global hq of disruptive innovation, goes a step further and bans non-competes altogether. The FTC should do the same, on the ground…
Can't even read the whole article because of the paywall, but the part before the “pay for the full article” does mention the FTC has them in their sights.
This is an opinion article about the news, not a news article, though, so it focuses on the why its good, not the details of the FTC action. See, for the latter, from the source: https://www.ftc.gov/news-events/news/press-releases/2023/01/...
Re: The FTC plans to curtail the use of non-compete clauses
#8Re: The FTC plans to curtail the use of non-compete clauses
#9Re: The FTC plans to curtail the use of non-compete clauses
#10The States have 50 different approaches written into their laws on how to deal with non-competes. Some ban them entirely, while others curtail their scope or shift the burden to employers to justify them, and many do not regulate non-competes at all. A rule by the FTC that preempts the laws of every state for all non-competes regardless of scope without any specific statutory authority is the wrong approach.
The FTC is justifying this under Section 5 of the FTC act, which in relevant part prohibits "unfair or deceptive acts or practices in or affecting commerce." This kind of wholesale preemption of state law regardless of context seems like an awfully big change for such a broad and vague statute. Underscoring this point, the FTC has not historically used Section 5 in this way.
Expect to see this challenged in court.