FTC Ban on non-compete agreements (in 120 days)

[libertysnake]

Sounds like something that technically applies to this section. In 120 days, non-competes are null and void. To be honest, these were hard to enforce anyway, so this is more or less just formalizing what already was the case in reality.

FTC Announces Rule Banning Noncompetes

Today, the Federal Trade Commission issued a final rule to promote competition by banning noncompetes nationwide, protecting the fundamen

www.ftc.gov

 

[Modean]

Good. No one should be in a situation where they are unable to work after leaving their job. Don't want them to compete against you? Make them want to stay!

 

[SomeSoldier]

This is for all professions?

 

[C3D]

I'd say a 99.9% chance the FTC's action is struck down before it takes effect. This is another example of an agency writing wholesale new laws without authority, and falls under the so-called "Major Questions Doctrine".

Major questions doctrine - Wikipedia

en.wikipedia.org

 

[libertysnake]

This is for all professions?

Yep.

Now afaik they could still tell you, specifically, you can't steal very specific clients from the biz you left. That's a non-solicit. But they CANNOT tell you, from now on (in 120 days from April 23rd), that you cannot perform your profession with other companies and need their permission. That part is dead.

 

[SomeSoldier]

Yep.

Now afaik they could still tell you, specifically, you can't steal very specific clients from the biz you left. That's a non-solicit. But they CANNOT tell you, from now on (in 120 days from April 23rd), that you cannot perform your profession with other companies and need their permission. That part is dead.

I have had to sign non-competes. I think they are stupid.

 

[SomeSoldier]

I'd say a 99.9% chance the FTC's action is struck down before it takes effect. This is another example of an agency writing wholesale new laws without authority, and falls under the so-called "Major Questions Doctrine".

Major questions doctrine - Wikipedia

en.wikipedia.org

Maybe this is what they are trying to do, get SCOTUS to overturn their own ruling?

 

[dwa12479]

Most of the people I know thst have signed non-compete clauses were taking a skill of some sort with them that their current company paid for. They could decline and compensate the company for the education.

Example. My shop sent a guy to school for PDR, Paintless Dent Repair. They spent something like $30k over 2 years while he was training and they bought all the equipment. He signed a 5 year non- compete saying he wouldn't start his own independent business for 5 years after he left. If he renegs on the deal he owes for the training.

 

[togmaster]

Most of the people I know thst have signed non-compete clauses were taking a skill of some sort with them that their current company paid for. They could decline and compensate the company for the education.

Example. My shop sent a guy to school for PDR, Paintless Dent Repair. They spent something like $30k over 2 years while he was training and they bought all the equipment. He signed a 5 year non- compete saying he wouldn't start his own independent business for 5 years after he left. If he renegs on the deal he owes for the training.

The way it should be.

 

[Saltwater60]

I wonder if the gov will hold me to mine.

 

[TEOTWAWKI inc.]

This is retarded.

Next will be NDA's, then patents, and people/companies will just stop developing IP altogether unless they are willing to kill to protect it.

Say goodbye to anymore innovative startups.

 

[repete]

Most of the people I know thst have signed non-compete clauses were taking a skill of some sort with them that their current company paid for. They could decline and compensate the company for the education.

Example. My shop sent a guy to school for PDR, Paintless Dent Repair. They spent something like $30k over 2 years while he was training and they bought all the equipment. He signed a 5 year non- compete saying he wouldn't start his own independent business for 5 years after he left. If he renegs on the deal he owes for the training.

I can understand that, besides after that 5 years he will be experienced enough to go out on his own.
I had a prospective employer that wanted all his new hires to sign one, I refused, I had the skills and training long before I met him and had those same skills after I left.