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FTC Proposes Banning Noncompete Clauses for Workers

The Federal Trade Commission on Thursday issued a plan to ban noncompete clauses, a proposal that would allow workers to take jobs with rival companies or start competing businesses, arguing that noncompete clauses constitute an exploitative practice that undermines a 109-year-old law prohibiting unfair methods of competition.

Thank you President Biden. The GOP will oppose this, but it will probably pass.
Ynotisay · M
This is a tricky one to provide a one-size-fits-all solution. But at the end of the day, anything that will drive worker wages while increasing opportunities is nothing but a good thing. So yeah. Thank you President Biden. He's got good people in the right positions and change is really taking place.
Northwest · M
@Ynotisay Non complete has been massively abused, and it's time for it to go.
Ynotisay · M
@Northwest I agree it needs to go. But there are situations where it's viable. I'm in California and they're mostly banned already. But it can get a little tricky in the C-Suite or with former partners.
Northwest · M
@Ynotisay This was mostly used by companies to exact revenge. In reality, ex employees are prohibited from using company intellectual property. Even at the C-level, certain things, are intellectual property, even if they don't involve design.

I've never asked an employee to sign a non-compete. Some small companies were using them to drive their competition out of business. Washington state also all but put that type of abuse to pasture.
My understanding is that the standard legal advice is that, once you have left an employer with such a clause, the clause is unenforceable, since they are no longer paying you.

If this is the case, codifying it and taking away the ability of employers to bully & threaten employees makes sense.
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