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Message
re: Non-Compete agreements are now illegal nationwide!
Posted on 4/24/24 at 11:02 am to CatfishJohn
Posted on 4/24/24 at 11:02 am to CatfishJohn
Non compete basically removes a person’s ability to work in their particular field.
A football player can’t go to a division rival, but that doesn’t mean they’re removing their ability to play football entirely. There’s a difference.
A football player can’t go to a division rival, but that doesn’t mean they’re removing their ability to play football entirely. There’s a difference.
0
Posted on 4/24/24 at 11:31 am to Dairy Sanders
quote:Every non-compete I've ever seen specifies voluntarily leaving or fired with cause.
So what? They could have fired him any time with no warning. Is he not suppose to earn a living because they don’t give him enough reason not to want to leave?
Posted on 4/24/24 at 11:43 am to TDsngumbo
Is this ruling just for employer-employee non-competes, or does it include selling a business to another entity?
Posted on 4/24/24 at 12:21 pm to Undertow
quote:
This is just more of government agencies expanding their own power.
No it's not. This is a government agency giving YOU the freedom to choose who you work for.
Posted on 4/24/24 at 1:37 pm to Indefatigable
quote:
So you did consent. Just as you consented to your salary, job duties, other policies, etc.
Yes, he consented. But in most states the law has evolved such that these non competes are not enforceable unless the employee gets something material in exchange for the agreement. And a job and salary does not count.
Posted on 4/24/24 at 1:44 pm to Epic Cajun
quote:
The market will determine who gets future business?
No. You guys are funny. The non competes that are part of a business sale are not being challenged. Of course those are valid. So too are non competes for folks who get a material consideration for their agreement. Example: Let’s say I have a salesman selling pipe who gets $150,000 base salary plus an incentive of $50,000 to $150,000 per year depending on his performance. I get him to sign the incentive agreement and it includes a non compete. That is enforceable.
If he quits he can’t go work for another company selling pipe. However, he can go work for a company that buys pipe or for a company that sells other stuff. Then when his non competition period is over - say one year - he can go work for whomever he wants. This edict doesn’t change that.
Posted on 4/24/24 at 4:28 pm to bamabenny
I'm arguing an agency deciding on what's illegal or not.
Posted on 4/25/24 at 10:19 am to N2cars
The FTC act specifically says the FTC is empowered to prevent AND eliminate unlawful / interlocking contracts and unfair business practices.
Posted on 4/25/24 at 10:28 am to PGAOLDBawNeVaBroke
From the linked article:
quote:
Congress has not given the agency explicit authority to ban noncompetes, although there have been several bipartisan bills introduced to reform noncompete
Posted on 4/26/24 at 6:27 pm to N2cars
It’s already part of their mandate, the act has been passed, it’s a done deal. They also can block M&A activity. Congress doesn’t matter.
Posted on 4/26/24 at 7:08 pm to TDsngumbo
In August. Non competes have been way over used and abused. Not sad to see them go away (except after sale of a business).
Posted on 4/26/24 at 7:13 pm to Tridentds
quote:
About $80K+ to fight one if it is in your state. If you signed one with a big company that has their headquarters designated in a state like Conneciticut (that is pro business) then you can expect to pay quite a bit more if you are going to fight it from TX, LA, MS, AL, etc...
Most lawyers will advise you to just just sit out the 1-year non-compete.
If a company attempts to enforce a non-compete clause in Washington and your total compensation is less than $100,000, they are in violation of state law and owe you a minimum of $1,500.
Posted on 4/26/24 at 7:14 pm to TBoy
The Pacific Legal Foundation filed suit yesterday against the Government's attempt to interfere with a private contract. They will once again beat the crap out of the Feds.
Posted on 4/26/24 at 7:16 pm to Indefatigable
quote:
Imagine the audacity of a business to protect their investment and operations.
How selfish of them.
99% of business don't invest in people anymore and just try to rope them in and keep them there as cheap as possible.
Even the good ones have been sucked into this model.
Non-competes aren't good for either side.
Posted on 4/26/24 at 7:30 pm to CatfishJohn
quote:
If you sign it, you sign it
I get that and it is a valid point. But the flip side is that the person being offered the job really doesn’t have a choice. Sign the non-compete or we hire someone else.
And in fields where non-competes are common, it’s not like there is often a backup job that won’t make you sign.
Posted on 4/26/24 at 7:32 pm to Indefatigable
quote:
So you did consent
Most people will when the alternative is unemployment.
It’s more coercion than real consent
Posted on 4/26/24 at 7:40 pm to Indefatigable
quote:
I am in favor of two people being able to contract the terms of their relationship as they see fit
Well most of what we are discussing is not “two people”.
It’s one person trying to gainfully employed vs a corporation that wants to punish them if that person gets a better job offer.
Posted on 4/26/24 at 8:25 pm to Indefatigable
quote:
Why is the federal government involved in consensual employment contracts?
Additionally, the FTC ? Another 3 letter agency, with unelected bureaucrats making unconstitutional laws. Congress makes laws.
Posted on 4/26/24 at 8:45 pm to wadewilson
quote:
No it's not. This is a government agency giving YOU the freedom to choose who you work for.
That statement is worded terribly.
Prior to this dumb govt. Overreach People already had the ability to choose which companies they would like to apply to work for and then choose to work for the company that they believe gave them the best offer/compensation package. .
Also,
Posted on 4/26/24 at 8:58 pm to Gorilla Ball
quote:
had a friend that was laid off and her former company was still enforcing her non compete- totally ridiculous
Thats ridiculous. Your Friend should have gone to work anyway and made the previous employer (PE for future reference) sue. I imagine the PE would loose or be required to compensate your friend for the entire time laid off.
The new hiring company should have made it clear that they would fund the fight against the NCA.
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