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re: Non-Compete agreements are now illegal nationwide!

Posted on 4/24/24 at 9:07 am to
Posted by pankReb
Defending National Champs Fan
Member since Mar 2009
64514 posts
Posted on 4/24/24 at 9:07 am to
quote:

I’ve read the FTC Act and it doesn’t (or shouldn’t) apply to this. But the way the bill is written it does kind of open the door for them to seize more power than was intended. That’s why I’m for the abolition or re-writing of the FTC Act to better specify its boundaries.


You can't post that after already posting this...

quote:

instead of congress as required by the constitution.
Posted by bamabenny
Member since Nov 2009
14649 posts
Posted on 4/24/24 at 9:27 am to
anyone arguing against this possible ruling has obviously never had a non-compete held over your head as a weapon. non-competes are bullshite
Posted by pankReb
Defending National Champs Fan
Member since Mar 2009
64514 posts
Posted on 4/24/24 at 9:50 am to
quote:

anyone arguing against this possible ruling has obviously never had a non-compete held over your head as a weapon. non-competes are bullshite


I'm all for non-competes for active employees preventing them from conflicts of interest but NC's that prevent someone from leaving a company for a competing one is bullshite.
Posted by ronricks
Member since Mar 2021
6556 posts
Posted on 4/24/24 at 9:54 am to
quote:

anyone arguing against this possible ruling has obviously never had a non-compete held over your head as a weapon. non-competes are bullshite


First job out of college I worked for an IT consulting firm. One of our clients a bank was going to bring the IT services in house. They offered me a job. I had a non compete, I accepted job. Bank had an in house legal dept my company did not. Bank told me not to worry about the non compete. My previous employer other than making empty threats didn't do shite because they would have had to spend a shite load of money to fight it out with a bank.

Posted by Gorilla Ball
Member since Feb 2006
11667 posts
Posted on 4/24/24 at 9:56 am to
The news said that the ruling was too broad to be enforced- I don’t really have a clue
Posted by Gorilla Ball
Member since Feb 2006
11667 posts
Posted on 4/24/24 at 10:06 am to
I had a friend that was laid off and her former company was still enforcing her non compete- totally ridiculous
Posted by concrete_tiger
Member since May 2020
5991 posts
Posted on 4/24/24 at 10:13 am to
quote:

The news said that the ruling was too broad to be enforced- I don’t really have a clue


Like many things, awareness is a good first step.
Posted by concrete_tiger
Member since May 2020
5991 posts
Posted on 4/24/24 at 10:14 am to
quote:

I had a friend that was laid off and her former company was still enforcing her non compete- totally ridiculous


Same, my company wasn't going to let me work but they also paid me to not work which was equally dumb.
Posted by DavidTheGnome
Monroe
Member since Apr 2015
29166 posts
Posted on 4/24/24 at 10:19 am to
I can see the pros and cons of this. For some professions, especially where the company has to invest a lot into you, I can see where they're necessary. But they've definitely gotten completely out of hand requiring them for even the most basic jobs and even though they aren't enforced it's still an unnecessary thing
Posted by Undertow
Member since Sep 2016
7317 posts
Posted on 4/24/24 at 10:22 am to
Why not? The bill doesn’t go there. This is just more of government agencies expanding their own power.
Posted by bamabenny
Member since Nov 2009
14649 posts
Posted on 4/24/24 at 10:25 am to
In my industry, you are almost always going to have to sign a NC to make any kind of money. Hell, even the paper pushers and drivers have to sign them at some companies. When I left one of the bigs in the industry (think Airgas, Grainger, Motion, etc.), the first thing they did was try to hold the NC over me to keep me there, even though they wouldn't come off any money to keep me. Thankfully I convinced them I wasn't going to a direct competitor and was outside of their market basket and they left me alone, but the intent of a NC has completely changed to just be a weapon for the company and to keep employees from seeking higher paying jobs with better work environments.
This post was edited on 4/24/24 at 10:26 am
Posted by Undertow
Member since Sep 2016
7317 posts
Posted on 4/24/24 at 10:29 am to
quote:

okay, why?

This sounds like a personal political philosophy and not at all applicable. I don’t care what you think it SHOULD say.


Not in the slightest. The language of the bill doesn’t go that far. The FTC is exerting their personal philosophy as to what to do.
Posted by Epic Cajun
Lafayette, LA
Member since Feb 2013
32445 posts
Posted on 4/24/24 at 10:30 am to
quote:

I can see the pros and cons of this. For some professions, especially where the company has to invest a lot into you, I can see where they're necessary. But they've definitely gotten completely out of hand requiring them for even the most basic jobs and even though they aren't enforced it's still an unnecessary thing

I get that employers do invest in employees, in that case, have the non-compete start at the time of signing it, and only last 3 years or something. Having it start after separation and last for 2 years is nonsense.
Posted by Draconian Sanctions
Markey's bar
Member since Oct 2008
84857 posts
Posted on 4/24/24 at 10:31 am to
How so? be specific please.
Posted by solus
Member since Dec 2019
3260 posts
Posted on 4/24/24 at 10:34 am to
quote:

What if I sell my business to someone and then go right out and start another business just like the one I just sold?


Sounds like market competition to me
Posted by lepdagod
Baton Rouge
Member since Jan 2015
3389 posts
Posted on 4/24/24 at 10:42 am to
quote:

Having it start after separation and last for 2 years is nonsense.


Depends on the business... especially in construction... it's to easy for someone with investors backing them up to just overpay your salesman, supervisors etc. and crush your business.. I've seen it happen
Posted by nitwit
Member since Oct 2007
12234 posts
Posted on 4/24/24 at 10:43 am to
You are confused, but so are others in this thread.
There is no need for a non compete while the employee is still employed. The employee has duties of loyalty that prohibit competitive conduct against his employer during the existence of the employment relationship. The employer can sue for breaches of this fiduciary obligation without a non compete.
The employee cannot take confidential customer lists, confidential pricing info trade secrets and use them against the former employer after terminating the employment relationship. This obligation post-employment exists without a non compete agreement.
Posted by lepdagod
Baton Rouge
Member since Jan 2015
3389 posts
Posted on 4/24/24 at 10:44 am to
Will this effect non-interference clauses also???
Posted by lepdagod
Baton Rouge
Member since Jan 2015
3389 posts
Posted on 4/24/24 at 10:52 am to
quote:

There is no need for a non compete while the employee is still employed. The employee has duties of loyalty that prohibit competitive conduct against his employer during the existence of the employment relationship.


This is true... I know a lady who was fired from McDonald's where she was a manager after it became known to them she was a assistant manager at Taco Bell also.. weird because one mainly sells hamburgers the other tacos... but she was fired nonetheless...
Posted by Epic Cajun
Lafayette, LA
Member since Feb 2013
32445 posts
Posted on 4/24/24 at 10:55 am to
quote:

You are confused, but so are others in this thread.

I'm not confused at all. I've signed a non-compete (mine is essentially unenforceable) and so has my wife. I've worked at previous employers, where if they send you to get certain certifications you essentially have to sign an agreement that you will pay them back the expenses of that certification if you leave the company within 2 years. I'm okay with that. What I'm not okay with is preventing someone who has been working at a place of employment for 5+ from doing better for themselves. You create a "fake" market value by holding an employee hostage, and remove any bargaining power from that employee.
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