The FTC just finalized a rule banning noncompete agreements for every American worker?

[msc545]

Updates

9 d

There is one advantage to non-competes that nobody has mentioned yet: The presence of one of these in a contract you are considering entering into is a giant red flag telling you "don't do this". This is particularly true in states where NC's are prohibited and the writers of the contract have gone ahead and written it that way regardless, presumably to intimidate people.

[lightbulb27]

how are companies going to protect their interests? there's yin and yang to this.

it is a red flag to sign one...

[goaded]

Most of them, anyway. The original idea was to stop high level people taking corporation secrets with them; it ended up with being used against fast food employees. Good for Biden and We the People!

[ProbablyClueless]

Makes sense... Noncompetes put on the head honchos are still effective, but forcing an employee to make bigger pivots to cripple the competition just so they can leave a job is often inappropriate.

[abc3643]

While that is a good thing, it may not hold-up in court. It will be challenged.

[handsomelad70]

Long time coming !!!

[slatyb]

Good. They have been grossly abused. Use NDAs when appropriate.

[OtterMan68]

as long as the agreement is voluntary, it's not the government's place to interfere.

[goaded]

It's only really voluntary if you have other options.

[OtterMan68]

@goaded like not taking the job?

[msc545]

That is not always a viable option when the consequences of not taking the job are worse than taking it. You cannot legally make acceptance at a job contingent on an illegal contract clause.

[OtterMan68]

I'm saying it should not be illegal. It should be something negotiated between employer and employee

[msc545]

There is a power imbalance between employer and employee that renders any such negotiation invalid on its face.

[OtterMan68]

If no one is willing to sign the contract, the employer has no employees

[msc545]

People rarely refuse to sign contracts that include NC clauses because they need the job, or they don't understand the NC clause, or figure it will never apply to them. That does not mean that NC clauses should not be made illegal.

[OtterMan68]

we're not talking about fry cooks and grocery store cashiers. These are often professionals: engineers, etc

[msc545]

Often is not always. It can be just as harmful to servers as it is to CEOs

[exitseven]

Sounds like something the geniuses in the Biden administration would do.

[Snakeyes7]

The FTC does something right for once.

[msc545]

There is one advantage to non-competes that nobody has mentioned yet: The presence of one of these in a contract you are considering entering into is a giant red flag telling you "don't do this". This is particularly true in states where NC's are prohibited and the writers of the contract have gone ahead and written it that way regardless, presumably to intimidate people.