U.S. Moves to Bar Noncompete Agreements
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  U.S. Moves to Bar Noncompete Agreements
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Author Topic: U.S. Moves to Bar Noncompete Agreements  (Read 725 times)
Benjamin Frank
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« on: January 05, 2023, 04:45:47 PM »

“In a far-reaching move that could raise wages and increase competition among businesses, the Federal Trade Commission on Thursday unveiled a rule that would block companies from limiting their employees’ ability to work for a rival,” the New York Times reports.

“The proposed rule would ban provisions of labor contracts known as noncompete agreements, which prevent workers from leaving for a competitor or starting a competing business for months or years after their employment, often within a certain geographic area. The agreements have applied to workers as varied as sandwich makers, hair stylists, doctors and software engineers.”

This is probably going too far, but:

1.It would definitely be something that could make Biden close to being as consequential as Reagan.

2.It is one of the items I've listed of non spending legislation/regulation that would make Biden as consequential as Reagan.
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Primary the Squad
Ray Goldfield
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« Reply #1 on: January 05, 2023, 05:14:01 PM »

But I was informed that Biden was now a ruthless strikebreaker who had turned on the workers.
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Blue3
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« Reply #2 on: January 05, 2023, 09:57:32 PM »

This would be great if it happens.
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Overturn Dobbs
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« Reply #3 on: January 06, 2023, 09:38:52 AM »

This would be good for Silicon Valley tech workers.
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Tintrlvr
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« Reply #4 on: January 06, 2023, 10:37:16 AM »

This would be good for Silicon Valley tech workers.

California already bans non-compete agreements for employees, so this doesn't affect Silicon Valley.
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Del Tachi
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« Reply #5 on: January 06, 2023, 11:00:13 AM »

This would be great if it happens.
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Blue3
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« Reply #6 on: January 06, 2023, 11:08:46 AM »

There are even preschools and school districts and childcare places that have this, leading to teacher shortages.
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MR. ANTHONY DEVOLDER
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« Reply #7 on: January 06, 2023, 02:58:56 PM »

!

please do
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NUPES Enjoyer
Antonio V
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« Reply #8 on: January 06, 2023, 05:14:25 PM »

Fantastic news.
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Cassius
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« Reply #9 on: January 06, 2023, 05:30:44 PM »

Restrictive covenants are often perfectly reasonable (where extensive training has been given or the employee has been made privy to trade secrets for example) which is why most countries permit them, so a blanket ban would not be wise. On the other hand, egregious use of them (as in the example given by Blue3) probably does need curbing.
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Хahar 🤔
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« Reply #10 on: January 06, 2023, 05:40:05 PM »

Restrictive covenants are often perfectly reasonable (where extensive training has been given or the employee has been made privy to trade secrets for example) which is why most countries permit them, so a blanket ban would not be wise.

There has been a blanket ban in California since 1872 and it has worked out very well for California. The classic example of this is that had they been bound by non-compete clauses, the "traitorous eight" would not have been able to leave Shockley Semiconductor in 1957 to found Fairchild Semiconductor. Without Fairchild, Silicon Valley would not exist, as Fairchild employees in turn started their own ventures (also not being bound by contractual agreements restricting them from work) as they came up with innovative new ideas.
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Reaganfan Democrat
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« Reply #11 on: January 08, 2023, 04:08:54 PM »

Noncompetes are usually unenforceable except for the most senior employees, for whom they often make sense.
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Conditional Surrender Taft
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« Reply #12 on: January 09, 2023, 08:28:34 PM »

This would be good for Silicon Valley tech workers.

California already bans non-compete agreements for employees, so this doesn't affect Silicon Valley.

And it has worked very, very well for Silicon Valley. Like almost too much. All of the companies in the same area have driven up wages to an insane degree.
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Skill and Chance
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« Reply #13 on: January 13, 2023, 04:56:01 PM »
« Edited: January 13, 2023, 06:23:44 PM by Skill and Chance »

Noncompetes are usually unenforceable except for the most senior employees, for whom they often make sense.

This isn't necessarily true.  They are banned outright (for employees) in CA, OK, and ND.  They are banned for employees below a certain wage in several of the Western and Northeastern blue states.  They are allowed but notably hard to enforce in several of the "free market" Sunbelt states like TX.  However, they can be aggressively enforced in several other states, most notably Florida.     
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Bismarck
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« Reply #14 on: January 24, 2023, 09:21:09 PM »

I hope they do this. Non compete agreements are one of the most unfair things ever.
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