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Noncompete Clauses: Signing Away the Right to Get a New Job

nytimes.com

11–20 of 395 posts

Re: Noncompete Clauses: Signing Away the Right to Get a New Job

#11

Using "poaching" to describe a company hiring someone from another company, needs to die. Companies do not own people. It is strictly a business relationship. I think that the US as a whole should follow California in outlawing non-competes. It definitely has been shown to be workable.

I think it's fine. Dirtier the connotation, the greater the company must feel to fight against it to keep you.

Re: Noncompete Clauses: Signing Away the Right to Get a New Job

#12
Health insurance is also part of the rigged labor market.

The only reason big companies offer health insurance is because it limits employees's freedom. It would be easy for the Fortune 100 or 200 in unison agree to eliminate health care and provide a higher salaries. It would make the companies more competitive globally and it would free them from a whole lot of other nonsense, but they don't drop healthcare. The reason they don't droop healthcare is because healthcare and pre-existing conditions limit employee options and it suppresses wages. Also if there was universal healthcare it would be easier to start small companies and attract employees, those small business would be competing for employees against big companies on equal footing.

Healthcare is a racket limiting not just healthcare but freedom.

Re: Noncompete Clauses: Signing Away the Right to Get a New Job

#13
My last company's noncompete had a really nice twist: Instead of banning me from seeking employment at a competitor altogether, it instead granted my employer the right, to, at their discretion, compel me to delay starting at a competitor for a certain amount of time. However, in order to do so they would also have to pay my salary over that period.

Re: Noncompete Clauses: Signing Away the Right to Get a New Job

#14

Health insurance is also part of the rigged labor market. The only reason big companies offer health insurance is because it limits employees's freedom. It would be easy for the Fortune 100 or 200 in unison agree to eliminate health care and provide a higher salaries. It would make the companies more competitive globally and it would free them from a whole lot of other nonsense, but they don't drop healthcare. The re…

The other thing is, and i don't disagree it limits freedom btw, but if you're not in a pool of other people shopping for healthcare you have no bargaining power.

Re: Noncompete Clauses: Signing Away the Right to Get a New Job

#15

Health insurance is also part of the rigged labor market. The only reason big companies offer health insurance is because it limits employees's freedom. It would be easy for the Fortune 100 or 200 in unison agree to eliminate health care and provide a higher salaries. It would make the companies more competitive globally and it would free them from a whole lot of other nonsense, but they don't drop healthcare. The re…

I wouldn't say it's the only reason. I'd argue the only they reason they offer it is because employees expect it. Private insurance is super expensive, and the government doesn't offer healthcare to most working professionals.

Re: Noncompete Clauses: Signing Away the Right to Get a New Job

#16
post #6
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The really annoying thing about noncompetes is that they're usually at the discretion of the employer. You might be in a situation where you have a 12 month noncompete and nobody wants to hire you 12 months in advance, but then your former employer terminates your noncompete within a month and stops paying you.

If they terminated the noncompete, that's excellent! I'm thinking you've made a typo. ;-)

It's not excellent because they stop paying you if they terminate the noncompete, but you also can't look for a new job until the very end of your noncompete period.

Re: Noncompete Clauses: Signing Away the Right to Get a New Job

#18
post #16
post #6

Earlier quoted context omitted.

If they terminated the noncompete, that's excellent! I'm thinking you've made a typo. ;-)

It's not excellent because they stop paying you if they terminate the noncompete, but you also can't look for a new job until the very end of your noncompete period.

Perhaps you're right if they terminate your employment and the noncompete remains in force. But if they've terminated the noncompete, it's no longer in force and you can find work with a competitor.

Re: Noncompete Clauses: Signing Away the Right to Get a New Job

#19
post #10
post #2

Since this should be illegal, or at least illegal absent some reasonable compensation for giving up the right to freely seek alternative employment (e.g. a big retention bonus), presumably our politicians offering "regulatory relief" are to blame?

If the employee was terminated the non-compete should be terminated as well.

That creates the incentive for someone who wants to switch to a competitor to underperform - so she gets fired and can switch.

Noncompetes, viewed in a vacuum, are lopsided towards the employer by design. Which is why they are (ideally) counterbalanced by increased pay or other concessions to the employee.

Re: Noncompete Clauses: Signing Away the Right to Get a New Job

#20

My last company's noncompete had a really nice twist: Instead of banning me from seeking employment at a competitor altogether, it instead granted my employer the right, to, at their discretion, compel me to delay starting at a competitor for a certain amount of time. However, in order to do so they would also have to pay my salary over that period.

Seems like a bare minimum for such a contract term to be equitable, but seeking work while you have a job is so obviously encouraged by the current labor market that a non-compete clause strikes me as unpalatable unless it comes with guarantees against termination altogether for the same term.
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