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In a shocking twist, the government makes a decision that actually helps workers!!
https://www.ftc.gov/news-events/news/press-releases/2024/04/ftc-announces-rule-banning-noncompetes
Seems they are promising quite a bit here.......good luck on the delivery.
So if I hire a worker, introduce him to my vendors and customers, and pay him while I teach him the business, that worker should be able to take that information and practices to my competitor or use that information to start their own business at any time ? The point of a non-compete is to give a cooling off period so the business that trained the employee can have the opportunity to continue to earn that business without interference from the person that they paid to learn the business. Lots more nuances, but there is an applicable place for non-competes in some industries. An outright ban seems excessive.
I believe this falls under the category of “the best way to create a big problem is to start with a small one, the let the government “solve” it…”
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This will just push more business owners to delegate to capable remote work in PHP and LATAM. There is skill and education in those areas at the same level or above entry level white collar workers here in the US, at a fraction of the cost.
This isn't a win for workers. It just puts business owners at a cross roads.
Why would said worker go to one of your competitors?
We have to be careful about wanting a free market for businesses but wanting a controlled market for the workers, skilled or unskilled.
The issue is that non competes have gotten ridiculous…way to long and way to restrictive with broad definitions that prevent some workers from leaving bad working environments because they can’t work anywhere else in their industry.
Exactly, they hurt the workers far more than the employers, and I own a business. I agree maybe it shouldn't be a blanket law though, there are certainly some intricacies.
Information including vendors and customers could still be covered under a non-disclosure agreement, it doesn't stop your employee finding other vendors and other customers in your industry.
I've seen 5 year non-competes for entry level engineering positions. What good is getting experience if you can't take it with you.
The beauty of a free market is that you are free to accept a job offer with another company that doesn't have a stringent Non-compete.
An efficient market free of government meddling will sort this stuff out on its own. With the last 3 years of "jobs reports" wouldn't all the power be in the hands of the employee at this point?
fun story from my area.
A popular radio station lost 2 big names (sports radio talk show), the former hosts had non-compete which restricted them from joining other radio programs for x amount of months. So the former hosts started a podcast, and the company sued.
Fortunately, the judge agreed that a podcast is not a direct competitor of terrestrial radio, and the former hosts got to keep their podcast
Doesnt banning non-competes expand the free market of jobs? It's bad enough having medical insurance linked to your job.
Definitely the right decision. They’re ridiculous.
This. Non-competes are redundant for that benefit to the employer, and they only serve to hamstring the employee. I should be free to quit and go into business for myself or for a competitor as long as I'm not stealing intellectual property or the customer base of my former employer, both of which can be achieved without a non-compete agreement.
The free market has proven time and time again to implode itself without regulation.
corporate greed knows no limit
Non compete says nothing about term of a contract. If you don't want your employee leaving, sign them to a longer contract or offer them incentive to stay.
I have refused to sign contracts with non compete but every contract I've signed has signing bonus that I pay back if I leave before the term is up or a retention bonus. I have an out if the job blows but have ended up fulfilling every contract in part because I don't want to pay back the bonus.
The delivery is pretty easy. Only way to enforce these in first place is taking someone to court. You don't bother doing that unless you've got a good chance at collecting. This policy gives very easy defense and makes pursuing anything not at all worth it. Most of them are already not enforced as it is.
Pit Row
If an employee can learn your processes, your customer list, your relationships etc in a short time and then jump ship and take all of that from you then that’s a you problem
This is absolutely a win for workers, not even a question. Current non compete “agreements” are very restrictive and don’t serve a real purpose. They’ve been outlawed in California for quite a while already
Baby arm…
If Corporate America actually took care of their people, nobody would have to worry about non-competes. Loyalty is a two way street and I’ll always err on the side of caution, with the working man.
a fellow P1 I see
He died last year.
Courage…
got sick and pass away
Heart attack, is what I believe I heard. Not from complications of a single to table…..
This isn't always the case, sometimes you gotta take a job when you get an offer. Maybe your life circumstances don't allow you to move for a better job, but several years later you can except the non compete locks you in.
The company I worked for didn't make me sign a non-compete, but I had to sign a 2 year minimum agreement to be sent to training. If I had left early then I'd have to pay back a prorated amount of the cost for training. This make more sense to me in most circumstances than a non-compete. Pay your employees a fair wage with good benefits and they won't take your secrets to a competitor.
Are you a pilot?
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