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FTC announces rule banning noncompetes
61–70 of 530 posts
Re: FTC announces rule banning noncompetes
#62This 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!
Anyone can have a “strong economy” if they can print $2T a year. The question is for how long.
Re: FTC announces rule banning noncompetes
#63The U.S. Chamber of Commerce is likely to file suit: https://www.uschamber.com/finance/antitrust/chamber-comments...
I suspect this won’t survive a challenge in front of the current Supreme Court, unfortunately.
It'll be interesting to see what happens. It does sound like this clearly falls under interstate commerce, so within the scope of Fed action. Is there something that makes you think otherwise? Beyond court composition, that is.
Re: FTC announces rule banning noncompetes
#64I am 100% for this, but it makes me sad that the legislative branch has nearly completely abandoned its duty to pass laws in favor of granting the executive branch the authority to regulate just about everything.
This is a problem for two main reasons:
1. The executive branch can unilaterally revoke these regulations, making them more volatile. Maybe my non-compete is invalid today, but will it be in 4 years when I actually want to change jobs? Changing a law takes approval of either majority of both chambers plus the president, or a supermajority of both chambers.
2. It lowers the stakes in congress, which I believe causes more misbehavior. When the stakes are actually high enough, congress tends to get things done. When the stakes are low, congress grandstands for reelection.
Re: FTC announces rule banning noncompetes
#65Does this change a lot for many people? This doesn't mean you can scurry off a just build a competing product/service to your existing employer. You probably also have NDA and/or IP agreements too. > The Commission found that employers have several alternatives to noncompetes that still enable firms to protect their investments without having to enforce a noncompete. > Trade secret laws and non-disclosure agreements…
Removing the risk of legal consequence simply for changing who you sell your labor to is a big change for many people.
Re: FTC announces rule banning noncompetes
#66Why now?
Lina Khan
Re: FTC announces rule banning noncompetes
#67This 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!
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Re: FTC announces rule banning noncompetes
#68My 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?
> FTC doesn't really have the ability to do this, since contract law is part of state law The federal government can absolutely regulate both employment and contract law. (Merger agreements are contracts. The FTC was established to block bad mergers.) Whether the FTC can do this is untested. But that’s more a Chevron issue than a federal powers one.
Relying on a Chevron argument is not particularly wise given the pending Supreme Court cases Relentless Inc. v. Department of Commerce and Loper Bright Enterprises v. Raimondo where the Court is expected to overturn Chevron:
https://www.scotusblog.com/2024/01/supreme-court-likely-to-d...
Re: FTC announces rule banning noncompetes
#69This seems incredibly important. I know non-compete rules personally held me back at a previous tech job. I'm interested to see how this hits finance firms – I know people who were forced to take a year off between jobs (although they were compensated the whole time). Always thought that would be a pretty sweet deal.
> I know non-compete rules personally held me back at a previous tech job.
Yeah. Remember this when you go to vote in November. Elections matter.