Economic And Business Impacts Of FTC’s Noncompete Ban

[mascoma]

Will banning noncompete clauses result in higher wages and more entrepreneurship?

https://www.forbes.com/sites/billcon...h=7454f79a188d

Noncompetes have never seemed fair to me. I've never been subject to one. Can't companies protect their intellectual property with nondiclosure agreements?

[mathjak107]

it’s a very complex subject .

whether there is a non compete agreement or not , an employer can simply get a court order to keep key employees who can hurt the company away from customers for whatever time the court says is fair .

the employer can try to keep the customer to themselves for that period of time and retain them .

i had no noncompete agreement but this happened to me..

i wasn’t allowed to go near my customers for a few months .

technically any information in the company computer that s isnpassworded to get in is considered confidential company proprietary information and company property and that includes customers names you didn’t bring in to the company prior to working there .

so it doesn’t take a noncompete agreement to prevent you from working in your field if in sales

[don6170]

Originally Posted by mascoma

Noncompetes have never seemed fair to me.

I can see where non-compete docs serve a purpose, but only for key employees. It should not apply to fast-food workers (Jimmy Johns) or similar jobs.

[mascoma]

I can see the problem with research and development though. I work in chemistry and know that companies keep a lot of information about how chromatography columns and conductivity suppressors secret. If someone who knew how they are made moved to another company he could take that knowledge with him.

[MrRational]

Originally Posted by mascoma

Will banning non-compete clauses result in higher wages and ...

Well, for those who get to keep/get the job in question. Rather like how an increase in MW can do.

...and more entrepreneurship?

YES! The issue there is about risk to the investors in the NEW enterprise (vs the existing company).
And why this sort of person DOES warrant being under (some sort of) NC limitation.


Once Upon A Time ... non competes were used with and LIMITED to EXECUTIVE and similar HIGH competence employees.
That has changed and THAT is why the policies need to be changed - including how they are applied under STATE law.
Personally I'm free trade in this matter as well.

[MKTwet]

Law firms have for years used it to keep wages down for all kinds of employment in the legal industry. Financial industry not so much because they know the financial incentives drives productivity for their most productive workers. Non-competes heavily used in tech to suppress income on engineers that may want to move to another similar firm but can't due to wage offerings being shared.

[Hoonose]

Originally Posted by mathjak107

it’s a very complex subject .

whether there is a non compete agreement or not , an employer can simply get a court order to keep key employees who can hurt the company away from customers for whatever time the court says is fair .

the employer can try to keep the customer to themselves for that period of time and retain them .

i had no noncompete agreement but this happened to me..

i wasn’t allowed to go near my customers for a few months .

technically any information in the company computer that s isnpassworded to get in is considered confidential company proprietary information and company property and that includes customers names you didn’t bring in to the company prior to working there .

so it doesn’t take a noncompete agreement to prevent you from working in your field if in sales

It can be. Many of our local docs voluntarily signed a no compete with our hospital in exchange for lucrative profit sharing. If there wasn't a no compete, the investment would have never happened. I should mention this deal was all above board, arms length, approved and grandfathered by the medical powers that be.