FTC votes to ban non-compete agreements.

14,714 Views | 212 Replies | Last: 2 mo ago by Fightin_Aggie
BusterAg
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AgGrad99 said:


Quote:

Sounds like free market.
This is said a lot, but free market doesn't mean anarchy. It doesnt mean no rules or regulations apply.

In fact, it means a market, where the government doesnt intervene. In this case, the market has allowed for non-competes to exist, and the Government is intervening...
As you say, a free market is one where an employer has the right to ask an employee to sign a non-compete, and an employee has a right to tell the employer to pound sand and find a job elsewhere.

Restricting the rights of a company and individual to enter into a contract is an intervention into a free market.
BusterAg
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aggiehawg said:

The Banned said:

bmks270 said:

If your entire business depends on a few key employees hanging around and keeping all of your customers from leaving, then you should give them some path to partner or equity holder in the business.




And another great point. Noncompetes operate out of a position of fear. When people are properly incentivized and given upward mobility, they tend to stick around. When they are undervalued or underpaid, they tend to leave.

I get that certain industries can have high onboarding costs and the company should have methods in which to protect themselves. The ruling outlines several of these, such as NDAs, non-solicitation, TRAPs, etc. But the idea of "you need to keep working for me or face financial ruin….. and oh by the way I can fire you any time and the same rule is in effect" is stupid and it needs to go.
Then Congress needs to pass legislation saying that. The FTC has no power nor authority to do so. Which is why I originally started this thread.
I'm with you. Loper-Bright doesn't help FTC here, either.
Fightin_Aggie
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BadMoonRisin said:

You think it's dumb that companies shouldn't be able to lay you off and also tell you who you can and cant trade your labor with for 6-12 months after you are gone?
I've never seen an enforceable non compete for someone that was layer off by their company
 
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