How a Noncompete Agreement Ban Could Add $300 Billion to Worker Wages | WSJ

The Federal Trade Commission proposed a new ban on noncompete clauses, which the agency says hurts workers and competition. Companies argue they protect trade secrets. WSJ breaks down what a federal ban could mean for workers and businesses.

Photo illustration: Jacob Reynolds

#FTC #Employment #WSJ

[RajShekharSingh]

One of the biggest reasons for California leading the nation in tech sector growth has been the fact that non-compete clauses are not enforceable in the state

[couragewon]

Away with non-competes! I have been hurt by one in the past as an employee

[Subgunman]

I was hit with a non compete letter after working for one company. Funny I never signed or was notified of such a contract when hired. The firm that hired me was a franchise of a large national company. I replied beck asking for a copy of the document I supposedly signed. They could not produce one. It was obvious to them their franchisee failed to get the document signed. Net result the franchisee tried to 1099 my employment after withholding taxes. Turned this over to the IRS for further investigation. It did not bode well for the franchisee.
My policy today is, you want a non compete, you will pay me my full salary for duration of contract as well as 100% of all withholdings at your expense. Fair enough.😊

[jaridkeen]

It should be illegal because it also makes it so Tech Workers and Engineers cannot make any technology on there own time. If i make an invention while working at my company they own it. Even if i did it all on my own time.

[BusyBodyVisa]

There is a place for noncompete clauses but they've been overused and abused by unscrupulous employers that don't want to have to compete for employees with higher wages/better benefits. They shouldn't be eliminated but they should be severely curtailed.

[BigSaenVEVO]

Ruling over an employee comes to a hard stop after they quit the job. End of discussion

[joebullwinkle]

Employers only have themselves to blame as they have instigated non compete clauses for positions that have no proprietary information. It’s been used to deny people the opportunities to move up in their remuneration packages and or to stop people leaving and suppress their wages. Non compete clauses should be restricted to only those few senior executive positions in a company where someone could well use the hard won proprietary IP against a current employer. However when you have China, who appears to have unlimited intelligence gathering capabilities and steals any and all IP, it is sort of a mute point that anyone has non compete clause in their employment contracts.

[splashmt]

I can’t imagine what trade secrets a hair salon is protecting with non competes.

[JJSmalls]

I signed non-competes before, and I also had a lawyer look over one of them for me.

He basically said that non-competes have to be specific, or they're not enforceable. Depends on state though.

States vary, though. The real danger is an arbitration clause in a different state than your own.

Talk to a lawyer. Line stuff out and send it back to review. It's probably a red flag anyways if the company won't budge.

[spamcheck]

Just make the non-compete void if you fire/layoff the worker.

They have a trade secret? Then sounds like you better pay them.

[Mike_Genisys]

It make sense at C-Level but saying the pizza delivery guy can't deliver pizza for another competitor is just crazy.

[jimknarr]

The Republicans won't go for that as that will upset their rich friends.

[Dendarang]

Literally anything that boosts wages is good in a consumer based economy, and it's the best and easiest way to further economic growth.

[johnreyn]

This action is definitely necessary. I would go so far as to hope that congress could pass legislation on this issue. We live in a capitalistic economy, not one of indentured servitude. Employers should not be permitted to cripple their employees from taking opportunities in exchange for a job. If they want employees to stay they need to either pay (in retention bonuses or stock options) or treat them so well they want to stay on. I am not a fan of the Biden Administration but will give credit where credit is due. This is something that is overdue and needs to be enacted into law.

[benjamindover]

I was subject to a non-compete which I had to accept in order to receive my severance payment

[ericeandco]

It not just wages. These non competes prevent people from having second jobs, getting a job in their field for up to two years, they put in clauses where you give up your legal rights. In case the non compete might not hold up they’ll put the same language in other employment contracts. It’s disgraceful they get away with it.

[milom]

Is United States. The only country on the war were working it’s not a human right? because how is it legal for companies to ban me as a worker to get a job in another company just because this company is the competence???

[karthigeyan]

Think company can fire employees but after firing employees are not allowed to join similar companies due to this law...

[texasgermancowgirl]

This is also extremely relevant for those that get laid off

[lordInquisitor]

Hoping to see some worker's options in the comments and not just a top down perspective