FTC Announces Rule Banning Noncompetes
FTC Announces Rule Banning Noncompetes
Today, the Federal Trade Commission issued a final rule to promote competition by banning noncompetes nationwide, protecting the fundamen
I haven't found the exact date, but it'll be effective 130 120 days after publishing in the federal register.
Edit: typo
My personal highlight:
The Commission also finds that instead of using noncompetes to lock in workers, employers that wish to retain employees can compete on the merits for the worker’s labor services by improving wages and working conditions.
Free market for jobs, how does that feel? Bet they're ecstatic to try the principles of fair competition for themselves.
Except on very narrow cases, these have always been a sham. And in those narrow cases it should be an NDA and the onus on the business to actually prove proprietary info was divulged or a patent was violated. Sucks for the businesses, but the alternative was in many cases needlessly handcuffing so many employees
My personal opinion is that ndas should require the business to continue paying the employees wage and offering a benefits package as though they were employed. The wage should increase by a ramping percentage each year
Actually important NDAs do this - they'll just pay you to come in (or at least not work anywhere else) until the knowledge you had is irrelevant... and if the action that the NDA would prevent is legitimately damaging there do exist laws around corporate espionage that already cover these breeches. If you outright steal legitimately protected information from an employer (a common example is customer lists) and resell it... an NDA isn't needed. NDAs have traditionally just been used as a scare tactic to contain information that isn't legitimately protected... and, of course, to unfairly punish ex-employees for leaving.
That's the idea behind CEOs golden parachutes.
I had an optional non-compete clause in one of my first jobs, but it was rarely activated by the employer, only for senior management and above. It also included payment for the period (iirk third of your salary for 2 years). In my EU country a non-compete without payment wouldn’t have been legal, not sure how it is/was in the US
And this folks, is why despite not being perfect. We absolutely should keep the biden administration going. This and the NLRB ruling are some of the most earth shattering empowerment of workers and people in half a century.
No, it doesn't make up for the missteps in Palestine. But the other option is for things to get worse in Palestine in the short term and beyond. But to also not have any consideration by our own government domestically either.
It hasn't been published yet. The Federal Register lags behind real life by a few days. Probably on Friday, or possibly early next week.
Wow