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Thread: Non-Compete clauses are banned

  1. #1
    Rally Onion! Chip R's Avatar
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    Non-Compete clauses are banned

    I don't think this is political but mods, feel free to move it if you think so.

    Anyway, the FTC has banned non-compete clauses. So if you leave a company, they can't get you to sign an agreement that keeps you from going to a similar but different company.

    https://finance.yahoo.com/news/ftc-v...ycsrp_catchall
    Quote Originally Posted by Raisor View Post
    I was wrong
    Quote Originally Posted by Raisor View Post
    Chip is right

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  4. #2
    breath westofyou's Avatar
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    Re: Non-Compete clauses are banned

    Good, they suck

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  6. #3
    Big Red Machine RedsBaron's Avatar
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    Re: Non-Compete clauses are banned

    Non-compete agreements certainly have been abused, but in some cases are necessary. For example, while West Virginia law has generally disfavored such restrictive covenants, in Reddy v. Community Health Foundation of Man, 298 S.E.2d 906, a 1982 decision, the W. Va. Supreme Court of Appeals held it would uphold a reasonably restrictive covenant. One issue in that case was the possibility of doctors coming to a rural community to work at a guaranteed salary for a few years with a Foundation, until the doctor built up his own practice to where he could compete directly against the Foundation.
    Last edited by RedsBaron; 04-24-2024 at 12:51 PM.
    "Hey...Dad. Wanna Have A Catch?" Kevin Costner in "Field Of Dreams."

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    Waitin til next year bucksfan2's Avatar
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    Re: Non-Compete clauses are banned

    I feel like they are necessary in certain instances of protecting intellectual property. But the vast majority of those signed now days give the employer total control and and terrible.

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  10. #5
    breath westofyou's Avatar
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    Re: Non-Compete clauses are banned

    Quote Originally Posted by RedsBaron View Post
    Non-compete agreements certainly have been abused, but in some cases are necessary.
    For sure, but when it limits a persons ability to shop their wares in a smaller marketspace then it's a bit draconian.

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    Re: Non-Compete clauses are banned

    Quote Originally Posted by RedsBaron View Post
    Non-compete agreements certainly have been abused, but in some cases are necessary. For example, while West Virginia law has generally disfavored such restrictive covenants, in Reddy v. Community Health Foundation of Man, 298 S.E.2d 906, a 1982 decision, the W. Va. Supreme Court of Appeals held it would uphold a reasonably restrictive covenant. One issue in that case was the possibility of doctors coming to a rural community to work at a guaranteed salary for a few years with a Foundation, until the doctor built up his own practice to where he could compete directly against the Foundation.
    I'm struggling to see why that's a necessary use of a non compete agreement. Allowing increased competition for healthcare services in a rural area is nothing but good for the citizens. If Dr. Reddy could open his own practice and compete with a government funded clinic then good for him.

    99% of non competes are total BS that companies use as an easy way for employee retention than anything. I've seen a few legitimate non competes in my day, mostly in IT and government contractors where trade secrets really are an issue. Companies worried about people leaving after training them though is just a sign of a bad company with poor leadership.

  12. #7
    Did we just become BFF's dubc47834's Avatar
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    Re: Non-Compete clauses are banned

    LOL...about 7 months too late. I just became a hospital employee at the facility I've worked at for 6 years, before March, I was a contractor here. My boss lost his job because our hospital said they wanted to bring our services in house. Our contract company refused to let him work because of the clause until the whole process was over. Pretty petty if you ask me!
    A smooth sea never made a skilled sailor!

  13. #8
    Member kaldaniels's Avatar
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    Re: Non-Compete clauses are banned

    I’m all for sticking it to the man so good…but will there be an unintended consequence of a big increase in corporate espionage type stuff? That could be a good thing…but I have to think somewhere out there is a a need for noncompetes on a limited basis.

    This just caught me off guard so I’m still processing.

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    Did we just become BFF's dubc47834's Avatar
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    Re: Non-Compete clauses are banned

    Quote Originally Posted by kaldaniels View Post
    I’m all for sticking it to the man so good…but will there be an unintended consequence of a big increase in corporate espionage type stuff? That could be a good thing…but I have to think somewhere out there is a a need for noncompetes on a limited basis.

    This just caught me off guard so I’m still processing.
    The article I read earlier said 3 states already have this law and buisness had no issues, California was 1 of thise atates.
    A smooth sea never made a skilled sailor!

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    Big Red Machine RedsBaron's Avatar
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    Re: Non-Compete clauses are banned

    I understand that the proposed rule by the FTC has an exception for existing non-compete agreements for senior executives (I confess that I have not read the "final rule" which I understand is 570 pages long). The term "senior executives" reportedly is defined as workers earning more than $151,164 annually. That exception makes some sense to me-it's really hard to justify a non-compete agreement for anyone other than a senior executive.
    Of course, some employers also require execution of a separate confidentiality agreement to protect alleged trade secrets and similar information. I do not know what effect, if any, the proposed new rule will have on those kind of agreements.
    The worst non-compete agreement I have ever seen was one a church tried to require a departing minister to sign, which purported to prohibit him from being a minister within roughly a 50 mile radius of the church. That agreement was wrong from both a legal and a theological standpoint. I advised the minister not to sign it. He didn't.
    "Hey...Dad. Wanna Have A Catch?" Kevin Costner in "Field Of Dreams."

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  18. #11
    Big Red Machine RedsBaron's Avatar
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    Re: Non-Compete clauses are banned

    Quote Originally Posted by Wayne Krivsky View Post
    I'm struggling to see why that's a necessary use of a non compete agreement. Allowing increased competition for healthcare services in a rural area is nothing but good for the citizens. If Dr. Reddy could open his own practice and compete with a government funded clinic then good for him.
    I haven't kept as current in recent years on W. Va. court decisions regarding non-compete agreements. If I recall correctly, in the Reddy case the Court was concerned about the possible adverse effect upon non-profit medical clinics. For a long time, the W. Va. Supreme Court of Appeals generally refused to uphold most non-compete agreements other than where it had concerns about a non-profit medical clinic.
    "Hey...Dad. Wanna Have A Catch?" Kevin Costner in "Field Of Dreams."

  19. #12
    Potential Lunch Winner Dom Heffner's Avatar
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    Re: Non-Compete clauses are banned

    I remain in support of non competes but the way these corporations were abusing them- it was not going to last.

    I really dont like training employees so they can open up a business right next door to me, I think they should be very very limited in scope. Maybe even 1 mile or something. But some of the places were doing 100 miles and 3 years and that is just dumb.

    Non solicit is the way to go I guess.

  20. #13
    Waitin til next year bucksfan2's Avatar
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    Re: Non-Compete clauses are banned

    I know many doctors have non competes, and I guess it makes sense to a certain extent. I had a cousin who signed a non compete, the owner of the practice ended up letting him go because they didn't have the increased business he expected, but the non compete was still in place. My cousin had to move to a different state to practice due to the distance of a non compete.

    I am sure there is quite a bit of corporate espionage going on now. And honestly, if someone is a key member of a group with "protected secrets" they are probably making more than $151,000 annually, or if they aren't they are about to.

  21. #14
    I wear Elly colored glass WrongVerb's Avatar
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    Re: Non-Compete clauses are banned

    Quote Originally Posted by Dom Heffner View Post
    I really dont like training employees so they can open up a business right next door to me,
    Would you hire someone who was trained by the business next door?
    Our planet is a lonely speck in the great enveloping cosmic dark. In our obscurity, in all this vastness, there is no hint that help will come from elsewhere to save us from ourselves. -- Carl Sagan (Pale Blue Dot)

  22. #15
    Potential Lunch Winner Dom Heffner's Avatar
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    Re: Non-Compete clauses are banned

    Quote Originally Posted by WrongVerb View Post
    Would you hire someone who was trained by the business next door?
    Read again.


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