FTC votes to ban noncompete agreements

https://www.foxbusiness.com/politics/ftc-votes-ban-noncompete-agreements

HYPERLINK has full article

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Noncompete agreements generally prohibit an employee from leaving their current company to work for a competitor and are more commonly used in more senior positions. The FTC's new rule would ban new noncompetes for all workers, including senior executives, as an unfair competitive practice.

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once again we see the pendulum swing from one side to the other when a clear middle and sensible ground exists.

First, before taking a job with a non-compete, you know that is part of the terms of employment to which you agree. Unless the employer agrees to compensate you for the period of non-compete, they tend not to hold up in court but, you still need to go to court and incur the expense and waste time.

The FTC missed the chance to simply state " non-competes are ok as long as full compensation for desired period of quiet time is paid"

why is it so hard for these agencies to use common sense?

 

Having been the victim of this practice, I applaud the ruling,

 

vs simply stating if you don't want the folks to compete, pay them to sit the bench?

then anyone wishing to employ non-competes understands the cost.

I too fought one a while back and it would have been cheaper for the former place to have just compensated me for x period of time when you look at my and their legal expenses.

I've had employment contracts before that clearly stated 1 year salary should they wish to execute a 1 year non-compete. None of my employees are on non-competes but they are under NDA

 

You signed it. How were you a victim?

 

he probably chose the wrong word. You make a good point that you know beforehand the stipulations of the job be it NDA and/or non compete.

 

Noncompete agreements are very common in the corporate world and especially in the technology industry. Who wants to flip burgers for 10 years or however, long it takes for the noncompete agreement to run out? This is a serious anti-competitive condition that holds technology back.

 

you may be confusing the terms for NDA with non-compete. There also reasonable non-competes for example, I open a pool cleaning service in a certain area. I hire you and teach you all about the business, chemicals etc. You sign a non-compete agreeing not to start or work at another pool service within 10 miles of my office. Those are common and do hold up

 

The practice was heavily abused. Even chain restaurants started using them.

It’s one thing to use them to try and protect proprietary information, but quite another when you use them to keep people under your thumb.

 

I generally support government staying out of trying to tell businesses how to operate. Government isn't very good at it.

 

The FTC doesn't have the authority to outlaw them.

 

I have a 1-year noncompete that only activates if I resign (its null if I'm fired or layed off). I've never had a problem with it.