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Job hopping helped Silicon Valley thrive. Why do other states restrict it?

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Re: Job hopping helped Silicon Valley thrive. Why do other states restrict it?

#61

The headline kind of has the valence of government activity backwards, though I agree with its policy proposal. Other states don't restrict job-hopping, they just stand by and don't interfere as the free market ends up having the effect of restricting job-hopping. Employees end up signing restrictive employment contracts, and states don't prohibit them from doing so. California has made a conscious decision that the…

Adam Smith's invisible hand can rest, replaced by the lawyer's suit.

Re: Job hopping helped Silicon Valley thrive. Why do other states restrict it?

#62

The headline kind of has the valence of government activity backwards, though I agree with its policy proposal. Other states don't restrict job-hopping, they just stand by and don't interfere as the free market ends up having the effect of restricting job-hopping. Employees end up signing restrictive employment contracts, and states don't prohibit them from doing so. California has made a conscious decision that the…

You say "free market" but the only reason other states work that way is because the courts enforce non-compete agreements. The state has a monopoly on court judgments, after all. In the same way we can say that the 19th century US didn't "restrict" freedoms, it merely "allowed people to own slaves". I'm not saying the comparison is apt, but it's easy to flip around words and say that "California prevents companies fr…

People said that in the 19th century. Some apologists even asserted that hapless slaves were too feeble to function an independent free men.

End of the day, it's "freedom fighters" vs "insurgents".

Re: Job hopping helped Silicon Valley thrive. Why do other states restrict it?

#63
post #17

> The best argument against noncompetes is about freedom > [...] there should be a presumption in favor of preserving people's freedom to join a new company or start one of their own. Alas, as nice as it is to cloth an issue we care about in the language of moral superiority, banning noncompete agreements does in fact impact the freedom of contract. (In the same way, but to a lesser extent, than the ban on being able…

Agreed, these laws are more like anti-trust laws. Free market economics, according to its primary academic proponents (academic economists) is not the same as, nor is it even consistent with, the government enforcing arbitrary contracts.

I've observed that said economists don't fight to unchain their institutions for the overbearing tenure arrangements that restrict the free trade of professorships.

After all, wouldn't the university operate more efficiently with underpaid adjuncts?

Re: Job hopping helped Silicon Valley thrive. Why do other states restrict it?

#64

What would happen if an employer in Massachusetts offered me a job and asked me to sign a non-compete clause, and I said I wouldn't take the job if I had to sign a non-compete? Do you think they would back down? Or do you think they would say "too bad" and withdraw the offer? My gut says that most of the time, they'll back down and take that off the table. But I guess it depends on whether you have a huge legal team…

For a bigger company, most of the time, they tell you to go away.

Re: Job hopping helped Silicon Valley thrive. Why do other states restrict it?

#65
What California used have was worse than non-competes. They had secret covenants between manor tech companies not to hire each others employees. I don't know if that has been completely eliminated. As for other states, you could ask why they have lots of stupid laws. As for California, you could ask why they have that stupid Proposition 13.

Re: Job hopping helped Silicon Valley thrive. Why do other states restrict it?

#66

What California used have was worse than non-competes. They had secret covenants between manor tech companies not to hire each others employees. I don't know if that has been completely eliminated. As for other states, you could ask why they have lots of stupid laws. As for California, you could ask why they have that stupid Proposition 13.

The Apple/Google/Adobe/et al. non-hire collusion is probably on hold for now due to the govt. investigations.

The only good thing I can say about that era was that Google had their ass handed to them by Facebook, which was one of the few non-participants in the collusion. Google employees had few options but to go to Facebook in droves.

Proposition 13 has nothing to do with tech employment directly. It was created because politicians just couldn't help themselves from raising real estate taxes voluntarily.

Re: Job hopping helped Silicon Valley thrive. Why do other states restrict it?

#67
post #26
post #17

> The best argument against noncompetes is about freedom > [...] there should be a presumption in favor of preserving people's freedom to join a new company or start one of their own. Alas, as nice as it is to cloth an issue we care about in the language of moral superiority, banning noncompete agreements does in fact impact the freedom of contract. (In the same way, but to a lesser extent, than the ban on being able…

> Alas, as nice as it is to cloth an issue we care about in the language of moral superiority, banning noncompete agreements does in fact impact the freedom of contract. (In the same way, but to a lesser extent, than the ban on being able to sell yourself into slavery.) Not allowing consensual slavery agreements, consensual beating people to death, etc, also limits "freedom of contract". That's because we value other…

"consensual slavery" is a tautology more ridiculous than anything the Soviet Union ever wrote in their propaganda. Nobody would sell themselves into slavery if they had a choice.

Which kind of brings up an interesting angle - if every company is asking for an NCA, can't you argue that you signed it under duress, i.e. you didn't have a choice in the matter, and therefore that part of the contract is invalid?

Re: Job hopping helped Silicon Valley thrive. Why do other states restrict it?

#68

The headline kind of has the valence of government activity backwards, though I agree with its policy proposal. Other states don't restrict job-hopping, they just stand by and don't interfere as the free market ends up having the effect of restricting job-hopping. Employees end up signing restrictive employment contracts, and states don't prohibit them from doing so. California has made a conscious decision that the…

I think your lense of "free market" needs to be supplemented with a little game theory here. If you're an employer, what's your disincentive for tucking in a little non-compete in your contract? None at all[1], especially since many of your prospective employees won't read it or potentially (if you're a low-wage employee) understand it's implications. Then what's the disincentive for an entire industry to do this? No…

" especially since many of your prospective employees won't read it"

Why is this on the employers, exactly?

Re: Job hopping helped Silicon Valley thrive. Why do other states restrict it?

#69
post #58
post #51

Earlier quoted context omitted.

The free market solution to contract enforcement is something like credit ratings where businesses form a network to enforce penalties. Without government, assuming society would be able to reach those levels of sophistication, it seems probable that capital would still enjoy a strong balance of power over workers to force them into undesirable contracts.

It's fine if corporations can form syndicates to black list workers, workers can form unions to strike, take over factories, etc. If corporations can then buy its own mercenaries so can workers form their own militias to take on rent a cops. And so on. This stupid fantasy of corporate tyrants free to do as they wish ends the same way all tyrannies do, with a revolution.

I guess so, though there are a lot of examples in history where you ended up with stable feudal-like states. The idea that anarcho-capitalism would produce an optimal equilibrium seems ahistorical to me. I don't think humans have figured out an ideal system of governance, but a strong central government constrained by the rule of law and some democratic checks and balances seems to be the best we've got.

Re: Job hopping helped Silicon Valley thrive. Why do other states restrict it?

#70
> He was thrilled when he got an offer for an $18-per-hour cleaning job in the Seattle area — a big step up from the $15-per-hour job he had taken a few months earlier

> After Almeida switched jobs, a lawyer from his old employer, ServiceMaster, sent him a letter threatening a lawsuit

> The company told the Seattle Times that the noncompete agreement was necessary because ServiceMaster had provided Almeida with valuable training

So require that the employee stay with the company until they recoup the investment. If the employee leaves before the term is up, charge the employee the cost of training.

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