Non-Compete clauses are banned

[TRF]

ok, a lot of dancing around here, but what I really need to know is this:

When can Jinder Majal join AEW?

[Dave C]

I've worked under employment contracts at several places in my career. I've gotten a LOT more money in salary when I agreed to non-competes during the duration of the contract. On top of that, if I left I had to honor the non-compete... if they left me I got 2 years salary and benefits along with them vacating the non-compete.

My guess is this will not hold up in the consulting and professional world. Too many companies connected to the government with too much to lose. Especially the defense and data industries.

[LegallyMinded]

Just thought I would post this update here: Federal Court Enjoins Federal Trade Commission’s Rule Prohibiting Non-Competition Agreements I'm sure the decision will be appealed, though I expect the Fifth Circuit won't look favorably at the rule either.

[RedsBaron]

I just noticed that several weeks ago (August 20, 2024), the same federal court granted summary judgment to Ryan LLC and the various Plaintiff-Intervenors against the FTC and set aside the Non-Compete Rule. This is not the final decision in this matter, as I assume the FTC has filed an appeal.

[Kingspoint]

I've worked under employment contracts at several places in my career. I've gotten a LOT more money in salary when I agreed to non-competes during the duration of the contract. On top of that, if I left I had to honor the non-compete... if they left me I got 2 years salary and benefits along with them vacating the non-compete.

My guess is this will not hold up in the consulting and professional world. Too many companies connected to the government with too much to lose. Especially the defense and data industries.

That's dealing with espionage. Completely different scenario. As far as the data industry is concerned, it's standard practice for Vice-Presidents on up to break off from their company taking assets (employees and thus infomation) with them to start new companies and compete against their former employers.

[Dave C]

That's dealing with espionage. Completely different scenario. As far as the data industry is concerned, it's standard practice for Vice-Presidents on up to break off from their company taking assets (employees and thus infomation) with them to start new companies and compete against their former employers.

I've worked on massive data bases for.... let's say.... governments (also for Wall Street and even sports entities, hospitals and even political parties) and have never see anything like this. Taking "information" (data) is illegal everywhere.... taking code I've written under a well written contract is perfectly fine. Competing with governments isn't possible. There are a lot of 3rd party reviews of the work but I never saw anyone being told they can't have code they've written if it was enumerated in their agreement. Most of my work was somewhat free-lance so I negotiated most of those contracts and validated them with a $400/hour attorney/nurse... who's my wife. Yes... she makes me pay.

[Kingspoint]

I've worked on massive data bases for.... let's say.... governments (also for Wall Street and even sports entities, hospitals and even political parties) and have never see anything like this. Taking "information" (data) is illegal everywhere.... taking code I've written under a well written contract is perfectly fine. Competing with governments isn't possible. There are a lot of 3rd party reviews of the work but I never saw anyone being told they can't have code they've written if it was enumerated in their agreement. Most of my work was somewhat free-lance so I negotiated most of those contracts and validated them with a $400/hour attorney/nurse... who's my wife. Yes... she makes me pay.

As long as you don't take it overseas, you're fine.

[BenchRider]

No surprise this was overturned. The dems should stick to doing the environment.

[Kingspoint]

Westphal’s former employer, a competing wheelchair manufacturer called Permobil, has sued him in federal court in an attempt to force him out of his job and reap monetary damages. They allege he took top-secret company information to their main competitor but have yet to produce much evidence and remain vague about the supposed information.

Once limited to high-level executives and specialized fields like engineering and medicine, noncompete clauses have proliferated widely across industries, becoming boilerplate contract language in fast-food and warehouse jobs. Washington state placed significant restrictions on the enforcement of noncompetes in 2019, passing a law that included a ban for workers making under $100,000 per year. But Permobil has sidestepped that law by filing suit in a federal court in Tennessee, where the company’s U.S. operations are headquartered, and where a judge agreed to hear the case, even though Washington law explicitly voids labor contracts that force adjudication in other states.


https://www.columbian.com/news/2024/...ing-up-anyway/


Detractors counter that the contracts are inherently – as the name implies – anticompetitive, unfairly restricting the labor market by allowing employers to coerce worker loyalty rather than compete fairly for it. They often point to California, crediting the state’s century-old law banning noncompetes for producing Silicon Valley’s dynamic culture of innovation. Skepticism of noncompetes also crosses some ideological bounds: Two other states that ban them include the free-market havens of Oklahoma and North Dakota, where a 19th-century law protects an individual’s freedom in “exercising a lawful profession, trade, or business.”

Regulatory pressure came to a head this April when the Federal Trade Commission announced a near-total ban on noncompetes. The rule had not yet taken effect when a federal judge in Texas struck it down in August, arguing the federal agency overreached its authority. The FTC has appealed. The University of Maryland research also found that restricting noncompetes increased wages by 4% for Washington workers in industries where noncompetes are common. Yet despite the law, employers from Amazon to nonprofit hospitals continue to retain or expand contract provisions that impose similar constraints on low- and medium-wage workers by rebranding them under different labels.

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No surprise this was overturned. The dems should stick to doing the environment.

It was a Texas judge. What would you expect?

[TRF]

Westphal’s former employer, a competing wheelchair manufacturer called Permobil, has sued him in federal court in an attempt to force him out of his job and reap monetary damages. They allege he took top-secret company information to their main competitor but have yet to produce much evidence and remain vague about the supposed information.

Once limited to high-level executives and specialized fields like engineering and medicine, noncompete clauses have proliferated widely across industries, becoming boilerplate contract language in fast-food and warehouse jobs. Washington state placed significant restrictions on the enforcement of noncompetes in 2019, passing a law that included a ban for workers making under $100,000 per year. But Permobil has sidestepped that law by filing suit in a federal court in Tennessee, where the company’s U.S. operations are headquartered, and where a judge agreed to hear the case, even though Washington law explicitly voids labor contracts that force adjudication in other states.


https://www.columbian.com/news/2024/...ing-up-anyway/


Detractors counter that the contracts are inherently – as the name implies – anticompetitive, unfairly restricting the labor market by allowing employers to coerce worker loyalty rather than compete fairly for it. They often point to California, crediting the state’s century-old law banning noncompetes for producing Silicon Valley’s dynamic culture of innovation. Skepticism of noncompetes also crosses some ideological bounds: Two other states that ban them include the free-market havens of Oklahoma and North Dakota, where a 19th-century law protects an individual’s freedom in “exercising a lawful profession, trade, or business.”

Regulatory pressure came to a head this April when the Federal Trade Commission announced a near-total ban on noncompetes. The rule had not yet taken effect when a federal judge in Texas struck it down in August, arguing the federal agency overreached its authority. The FTC has appealed. The University of Maryland research also found that restricting noncompetes increased wages by 4% for Washington workers in industries where noncompetes are common. Yet despite the law, employers from Amazon to nonprofit hospitals continue to retain or expand contract provisions that impose similar constraints on low- and medium-wage workers by rebranding them under different labels.

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It was a Texas judge. What would you expect?

Hey!

wait, that sounds right.