04-25-2024, 12:36 AM
The idea that a non-compete clause is for the protection of the company always seemed improperly imposed to me.
I can understand it from the point of view of the executive body, policy-makers, and strategic trade-secret holders... they should be honor-bound to not interfere with a business they are departing by exploiting their inside knowledge. But it seemed wrong to me to apply it to anyone under that highest executive level. Yet it often is... there are some 30 million citizens in this country that are basically tethered to their employers by a non-compete clause... they cannot leave their job without leaving their employability behind...
(By the way, a noncompete clause is not the same as a non-disclosure clause...)
From Ars Technica: FTC bans noncompete clauses, declares vast majority unenforceable
Subtitled: Chamber of Commerce vows to sue FTC, will try to block ban on noncompetes.
The Federal Trade Commission (FTC) today announced that it has issued a final rule banning noncompete clauses. The rule will render the vast majority of current noncompete clauses unenforceable, according to the agency.
"In the final rule, the Commission has determined that it is an unfair method of competition and therefore a violation of Section 5 of the FTC Act, for employers to enter into noncompetes with workers and to enforce certain noncompetes," the FTC said.
The US Chamber of Commerce said it will sue the FTC in an effort to block the rule, claiming the ban is "a blatant power grab that will undermine American businesses' ability to remain competitive."
Don't get me wrong, I'm sure the Chamber of Commerce can make a go of the legal challenge. But it seems like outside of the executive level they seem ludicrous and imposing.
"Noncompete clauses keep wages low, suppress new ideas, and rob the American economy of dynamism, including from the more than 8,500 new startups that would be created a year once noncompetes are banned," FTC Chair Lina Khan said. "The FTC's final rule to ban noncompetes will ensure Americans have the freedom to pursue a new job, start a new business, or bring a new idea to market."
The Chamber will contest these statements, and the FTC will have to revel it's reasoning to a court... should be fun... fetch the popcorn.
I can understand it from the point of view of the executive body, policy-makers, and strategic trade-secret holders... they should be honor-bound to not interfere with a business they are departing by exploiting their inside knowledge. But it seemed wrong to me to apply it to anyone under that highest executive level. Yet it often is... there are some 30 million citizens in this country that are basically tethered to their employers by a non-compete clause... they cannot leave their job without leaving their employability behind...
(By the way, a noncompete clause is not the same as a non-disclosure clause...)
From Ars Technica: FTC bans noncompete clauses, declares vast majority unenforceable
Subtitled: Chamber of Commerce vows to sue FTC, will try to block ban on noncompetes.
The Federal Trade Commission (FTC) today announced that it has issued a final rule banning noncompete clauses. The rule will render the vast majority of current noncompete clauses unenforceable, according to the agency.
"In the final rule, the Commission has determined that it is an unfair method of competition and therefore a violation of Section 5 of the FTC Act, for employers to enter into noncompetes with workers and to enforce certain noncompetes," the FTC said.
The US Chamber of Commerce said it will sue the FTC in an effort to block the rule, claiming the ban is "a blatant power grab that will undermine American businesses' ability to remain competitive."
Don't get me wrong, I'm sure the Chamber of Commerce can make a go of the legal challenge. But it seems like outside of the executive level they seem ludicrous and imposing.
"Noncompete clauses keep wages low, suppress new ideas, and rob the American economy of dynamism, including from the more than 8,500 new startups that would be created a year once noncompetes are banned," FTC Chair Lina Khan said. "The FTC's final rule to ban noncompetes will ensure Americans have the freedom to pursue a new job, start a new business, or bring a new idea to market."
The Chamber will contest these statements, and the FTC will have to revel it's reasoning to a court... should be fun... fetch the popcorn.
