I’ll be the first to admit that sometimes non-compete clauses are overboard. I had one way back in the day when I was working for a little wireless company, and they tried to enforce it when I went to work for a carrier, even though I was bringing no customers with me. It might have made sense if I tried to work for another independent agent, but, NC is also a right to work state, so, they had a tough time enforcing it. Regardless, they are often there for a reason, and it is not the federal government’s role to control this
Federal judge blocks FTC noncompete ban
A federal judge Tuesday blocked a nationwide ban on noncompete agreements from taking effect in September.
The Federal Trade Commission (FTC) voted in April to ban most noncompete agreements, which prevent tens of millions of employees from leaving their jobs to work for competitors or start a competing business.
The Dallas-based tax firm Ryan LLC, the U.S. Chamber of Commerce, the Business Roundtable and other business groups sued to block the rule from going into effect, alleging agency overreach that would make it harder for companies to retain talent.
U.S. District Judge Ada Brown in Dallas said the FTC had overstepped its statutory authority and called the rule “arbitrary and capricious.”
“This win preserves the validity of millions of employment contracts across the nation that facilitate trust between employers and employees, innovation through the protection of IP, and investment in the training of employees,” said John Smith, senior vice president, chief legal officer and general counsel for Ryan.
It would be one thing if there was a method to arbitrate non-competes – oh, wait, there is. Court. And, in some cases, state law. The FTC, though, did not have the authority as designated by the US Congress to make this rule.
Last month, a federal judge in Philadelphia rejected a bid by tree-trimming company ATS Tree Services to block the ban, reasoning the FTC has the authority “to prevent unfair methods of competition in commerce” under the 1914 Federal Trade Commission Act.
If it is an unfair non-compete, yes, that’s where courts, usually arbitration, comes in. But, say, someone jumping from one law firm to another in the same city and bringing all those clients of their previous firm is where a non-compete makes sense. Regardless, in most cases the federal government really has no authority to regulate the economy in this manner. But, this is exactly what Kamala and her comrades would want to impose.
I worked for a company that used many outside vendors and I refused to sign a contract, statement of work, or general business contract holding us to non-compete clauses. The vendors always relinquished.
How can you believe in a free market economy and keep workers from choosing where they wish to work?
Nobody here believes you, fatboy.
I’m hurt, dickbreath.
Rimjob, you’re something alright.
So the truth does hurt, hey fatboy?
Of course you did, you kept the door open so you could steal all their products when you left. We know how guys like you operate. Can only make sense since all you care about is yourself why would you sign a covenant not to compete I’m not could actually stop you from stealing the value of other people’s labor? How very communist of you. I’m stunned.
Trump Campaign’s EPIC TROLL on Kamala Harris campaign website (or lack thereof) – kamala2024policies.com/
https://commoncts.blogspot.com/2024/08/trump-campaigns-epic-troll-on-kamala.html
They judge-shopped for a Trump appointee…
An employee is forced to sign a contract saying they cannot move to a competitor. Freedom!!
You may not understand what a non-compete clause is. Let’s say you work at Jimmy John’s and a Penn Station opens across the street offering more pay. If Mr Jimmy John had an enforceable non-compete contract you couldn’t work at Penn Station for a certain amount of time after you leave Jimmy (6 mos or a year, e.g.). Often these contracts apply whether the employee quits or is terminated! Can you imagine being fired from a job ad not being able to work the same type job within a designated geographical area??
I’ve seen companies argue that they spent time and money training an employee and it’s not fair that another company lures them away!! Life is tough. Shouldn’t workers have the freedom to choose where they want to work?
Not all states allow enforcement.
Stealing intellectual property is still a crime.