FTC announces rule banning noncompetes • Hacker News Board

Re: FTC announces rule banning noncompetes

#11

Post by bretthoerner » Tue, Apr 23, 2024, 7:37 PM UTC

My attorney friends tell me that the FTC doesn't really have the ability to do this, since contract law is part of state law. (My poor paraphrasing, not theirs.)

I've been surprised I haven't seen this mentioned on social media or in the news. Are my friends wrong, or are people celebrating because this is just a step in the right direction even if it may not do anything yet?

Re: FTC announces rule banning noncompetes

#12

Post by fidotron » Tue, Apr 23, 2024, 7:37 PM UTC

> Under the final rule, existing noncompetes for senior executives can remain in force. Employers, however, are prohibited from entering into or enforcing new noncompetes with senior executives. The final rule defines senior executives as workers earning more than $151,164 annually and who are in policy-making positions.

Lot's of devs will be surprised to discover they are in policy making positions.

Re: FTC announces rule banning noncompetes

#13

Post by jejeyyy77 » Tue, Apr 23, 2024, 7:38 PM UTC

everyone who had a noncompete should be compensated.

Re: FTC announces rule banning noncompetes

#14

Post by [deleted] » Tue, Apr 23, 2024, 7:38 PM UTC

pylua wrote: post #10

If I have an existing non compete — what does this mean for me ? Is it invalid?

[deleted]

Re: FTC announces rule banning noncompetes

#15

Post by datadrivenangel » Tue, Apr 23, 2024, 7:38 PM UTC

The rule goes into effect 120 days after it gets published in the federal register, and at which point all previous non-competes are unenforceable EXCEPT for senior executives.

Senior executives cannot enter into new non-competes though.

Re: FTC announces rule banning noncompetes

#16

Post by [deleted] » Tue, Apr 23, 2024, 7:38 PM UTC

pylua wrote: post #10

If I have an existing non compete — what does this mean for me ? Is it invalid?

[deleted]

Re: FTC announces rule banning noncompetes

#17

Post by BeefySwain » Tue, Apr 23, 2024, 7:38 PM UTC

> The Commission also finds that instead of using noncompetes to lock in workers, employers that wish to retain employees can compete on the merits for the worker’s labor services by improving wages and working conditions.

I absolutely love this.

Re: FTC announces rule banning noncompetes

#18

Post by dpe82 » Tue, Apr 23, 2024, 7:38 PM UTC

mxwsn wrote: post #5

Why now?

Because we have a Democratic administration that is taking this stuff seriously.

Re: FTC announces rule banning noncompetes

#19

Post by a_wild_dandan » Tue, Apr 23, 2024, 7:38 PM UTC

This is a stunning change. We already have a uniquely strong economy. If the US keeps trending toward tackling anti-competitive behavior, we may avoid a downturn for quite awhile!

Re: FTC announces rule banning noncompetes

#20

Post by nerdright » Tue, Apr 23, 2024, 7:39 PM UTC

This is pretty big given the current stagnant job market. I expect a lot of startups to come from this change.