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.

Top | Newest First | Oldest First

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.

SomeMichGuy · M

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.

This comment is hidden. Show Comment

Add a comment...