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FTC votes to ban non-compete agreements

thehill.com

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Re: FTC votes to ban non-compete agreements

#2

Post by ApolloFortyNine »

From what I can tell this is a full ban (except for senior leadership), is that correct?

This is definitely an overall good thing for workers, but I do think a non compete that you are paid your salary during is fair for some industries. The ridiculousness always stemmed from companies being able to control who you worked for while you had ceased to benefit from the company.

Re: FTC votes to ban non-compete agreements

#3

Post by bawolff »

Good they are actually banning them.

IANAL, but i am in canada and from what i understand, most non-competes are unenforcible here (to be enforcible it must meet a bunch of standards which most tech non competes dont) but yet tech companies still insist on them to scare workers who dont know better into compliance. Its better to just ban them outright.

Re: FTC votes to ban non-compete agreements

#5

Post by a-priori »

bawolff wrote: post #3

Good they are actually banning them. IANAL, but i am in canada and from what i understand, most non-competes are unenforcible here (to be enforcible it must meet a bunch of standards which most tech non competes dont) but yet tech companies still insist on them to scare workers who dont know better into compliance. Its better to just ban them outright.

They were banned in Ontario in 2021, with only a couple exceptions for executive roles or after acquisitions.

https://www.ontario.ca/document/your-guide-employment-standa...

Re: FTC votes to ban non-compete agreements

#7

Post by ilove_banh_mi »

It will take 4 months to be effective, and there will be lots of lawsuits and obstacles. We'll see what happens.

On a personal note I had the most insane experience moving from California to Colorado and being offered a most extreme non-compete clause by a local engineering company that had just hired a new CEO ... from California; I had to give them information about every project I had worked on in the past, would have to report whatever I did outside of work hours, and give them a blank card to patent either if they felt like it. The director who wanted to hire me said they never had that kind of non-compete, the new CEO --fresh from California-- had introduced it. I declined.

Re: FTC votes to ban non-compete agreements

#8

Post by xyst »

Good.

Now let’s see if the FTC has the balls to stand up to the army of lawyers and lobbyists that the private industry will send to fight this.

Only time will tell. EPA regulators couldn’t do anything about the rampant amount of pollution that O&G produces. SCOTUS made sure of that [1]. I hope for different outcome for FTC

[1] https://www.hsph.harvard.edu/news/features/the-supreme-court...

Re: FTC votes to ban non-compete agreements

#9

Post by andthenzen »

Any employment law enthusiasts here who can comment on whether garden leave is still allowed under this? I would assume so, given the employment is active and the employee is still being paid, it is effectively an extended notice period where the employee doesn't do any work.
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