Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

FTC Proposes Banning Noncompete Clauses for Workers
WSJ ^ | 05-JAN-2023 | Dave Michaels

Posted on 01/05/2023 8:12:25 AM PST by SpeedyInTexas

click here to read article


Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-8081-92 next last
To: Boogieman

Quote: “The whole concept of “proprietary information” is obsolete and has been for a couple decades now. Eventually the law is going to have to catch up to that reality, along with dozens of other laws that are completely unenforceable in the information age.”

Uh no, it hasn’t. Not even close. Parents and Trade Secrets?


21 posted on 01/05/2023 8:29:47 AM PST by FlipWilson
[ Post Reply | Private Reply | To 15 | View Replies]

To: MeganC
A non compete clause is a violation of your civil rights.

No, it's not -- despite whatever some jackass claiming to be a civil rights crusader may have decided.

An employment contract is exactly that: a contract. If you are legally able to sign a contract, then that contract should be legally enforceable.

If you feel that some provision of your labor agreement is a violation of your civil rights, then don't sign it.

22 posted on 01/05/2023 8:30:44 AM PST by Alberta's Child ("It's midnight in Manhattan. This is no time to get cute; it's a mad dog's promenade.")
[ Post Reply | Private Reply | To 8 | View Replies]

To: FlipWilson

Going the way of the dodo, whether we like it or not, my friend.


23 posted on 01/05/2023 8:34:37 AM PST by Boogieman
[ Post Reply | Private Reply | To 21 | View Replies]

To: Alberta's Child

“If you feel that some provision of your labor agreement is a violation of your civil rights, then don’t sign it.”

If some provision of your labor agreement is a violation of your civil rights, then it’s void even if you do sign it.


24 posted on 01/05/2023 8:35:45 AM PST by Boogieman
[ Post Reply | Private Reply | To 22 | View Replies]

To: nathanbedford

Quote: “Application of noncompete clauses, by virtue of the common law, have for years been struck down if they are not reasonable as to time, geography and scope.”

Yes, the problem being in order to get there you have to litigate it and few individuals want to risk having to spend moola to do it. So they play it safe and forgo the opportunity.

The real problem is the lack of clear standards as to what is “reasonable.” It is the most fluid issue I find advising on an litigating. Rather than banning if I would rather see some uniform standard around that.

Still, this should not be an issue for the FTC. Either Congress or the States should do the job. Heck, in California these are banned already.


25 posted on 01/05/2023 8:37:13 AM PST by FlipWilson
[ Post Reply | Private Reply | To 7 | View Replies]

To: SpeedyInTexas
In my last year at Pacific Bell, the company pushed out a multi-page document seeking to own all of an employee's intellectual property in perpetuity includes heirs and assigns. That included any future employment outside of the company. I refused to sign. Another copy came. It went on for weeks. Eventually a company lawyer with an IQ above room temperature realized the "agreement" was insane and unenforceable. No more agreements were sent out and a blanket apology was issued.

My current employer asked for disclosures of IP developed prior to signing on that are excluded from any claims of production in a "work for hire" context. Much of what I've done in the last 31 years belongs to the government under a lifetime NDA. I have zero problem with that. The terms of engagement were agreed before the work was performed.

There are some things an IP agreement really can't harness. Prior experience solving a problem on another contract that speeds recognition and correction of the problem on a current contract is going to happen. That is especially true of development frameworks and operating systems. The same tool chains are in common use. The skill sets are similar. Some employees do it better than others.

26 posted on 01/05/2023 8:38:14 AM PST by Myrddin
[ Post Reply | Private Reply | To 1 | View Replies]

To: Boogieman
If some provision of your labor agreement is a violation of your civil rights, then it’s void even if you do sign it.

There's a difference between something that IS a violation of your civil rights and something that YOU FEEL is a violation of your civil rights. If you don't like something in a contract for any reason, then don't sign the stupid contract.

Some of us go through this sort of thing all the time.

If you want to know why this country is running headlong into leftist totalitarianism, just look around this website and see how many so-called "conservatives" are perfectly comfortable having the government treat them like children.

27 posted on 01/05/2023 8:39:59 AM PST by Alberta's Child ("It's midnight in Manhattan. This is no time to get cute; it's a mad dog's promenade.")
[ Post Reply | Private Reply | To 24 | View Replies]

To: Boogieman

Quote: “Going the way of the dodo, whether we like it or not, my friend.”

Nope, they aren’t. Not even close. And I have no idea what you base that statement on. Other than China stealing everything.


28 posted on 01/05/2023 8:40:00 AM PST by FlipWilson
[ Post Reply | Private Reply | To 23 | View Replies]

To: Obadiah

“Do we or do we not have a free market”

What is a ‘free market’?

An employee quitting a job and moving to another employer or an employee not being able to move to another employer?


29 posted on 01/05/2023 8:40:19 AM PST by SpeedyInTexas (RuZZia is the enemy of all mankind)
[ Post Reply | Private Reply | To 12 | View Replies]

To: SpeedyInTexas

1. It’s a state matter, not a federal matter
2. It opens the door to all sorts of opportunities for theft of intellectual property.


30 posted on 01/05/2023 8:43:04 AM PST by jagusafr ( )
[ Post Reply | Private Reply | To 1 | View Replies]

To: FlipWilson

“And I have no idea what you base that statement on.”

It’s quite simple. If we lived in a world where everyone was walking around with a Star Trek-style replicator in their pocket, then any commodity that could be replicated would instantly become worthless, or have its value reduced to only the cost of operating the replicator.

And we do live in that world now, except our replicators can currently only duplicate information. They can’t duplicate every kind of information with perfect fidelity, so something like the Mona Lisa still has value, but any kind of digital or inherently low fidelity information is already basically worthless. Society in general and our laws in particular just haven’t caught up to that new reality yet.


31 posted on 01/05/2023 8:43:44 AM PST by Boogieman
[ Post Reply | Private Reply | To 28 | View Replies]

To: Alberta's Child

“If you feel that some provision of your labor agreement is a violation of your civil rights, then don’t sign it.”

I’m not into the ‘civil rights’ argument.

But just saying ‘don’t sign it’ isn’t a realistic answer.

Take the health care profession. It is quite common across the country for physicians to sign non-compete agreements when joining a practice. Saying ‘don’t sign’ means no employment. Physicians have to sign.

What is a freer economy? Being able to change jobs as an employee so desires or a non-compete forcing an employee to stay in a job?


32 posted on 01/05/2023 8:46:28 AM PST by SpeedyInTexas (RuZZia is the enemy of all mankind)
[ Post Reply | Private Reply | To 22 | View Replies]

To: RatRipper

Exactly, this is a blatant Big Government anti Business move.


33 posted on 01/05/2023 8:47:56 AM PST by gibsonguy (He )
[ Post Reply | Private Reply | To 6 | View Replies]

To: SpeedyInTexas
If you rely on someone else for your employment then your "freedom" is already highly compromised. Interestingly, the founders of this country knew this well -- which is why they didn't allow their slaves and hired hands to be involved in the governing process.

It is quite common across the country for physicians to sign non-compete agreements when joining a practice. Saying ‘don’t sign’ means no employment. Physicians have to sign.

I am not a physician, but I have been in this exact situation myself in the past. Is this physician you describe an employee or a partner in the practice?

In my case, I refused to sign the agreement because I didn't like the non-compete clause in it. I wasn't opposed to a non-compete provision, but the one in the agreement was too broad for my liking. So, guess what ... I convinced the owners of the firm to modify that clause in the contract. If they didn't do that, I wasn't going to join the company.

34 posted on 01/05/2023 8:56:15 AM PST by Alberta's Child ("It's midnight in Manhattan. This is no time to get cute; it's a mad dog's promenade.")
[ Post Reply | Private Reply | To 32 | View Replies]

To: Alberta's Child

“There’s a difference between something that IS a violation of your civil rights and something that YOU FEEL is a violation of your civil rights.”

Sure, that’s for the courts, and the regulators to work out.

“If you don’t like something in a contract for any reason, then don’t sign the stupid contract.”

Well, in the real world, people sign contracts containing things they don’t like every day, for all kinds of reasons, and that’s not likely to change. In fact, I bet you have clicked through quite a few “terms of service” on websites that you don’t bother reading fully yourself. If not, then you’re more conscientious than 99% of the population.


35 posted on 01/05/2023 8:59:06 AM PST by Boogieman
[ Post Reply | Private Reply | To 27 | View Replies]

To: SpeedyInTexas

This is nearly universal in the tech business.


36 posted on 01/05/2023 9:04:37 AM PST by Mariner (War Criminal #18)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SpeedyInTexas; ProgressingAmerica
The FTC said noncompete clauses constitute an exploitative practice that undermines a 109-year-old law prohibiting unfair methods of competition.

Woodrow Wilson?

37 posted on 01/05/2023 9:07:29 AM PST by x
[ Post Reply | Private Reply | To 1 | View Replies]

To: Manuel OKelley

In 2009 my employer called me n the office and told me that I was being given the opportunity to find a new job after 18 years of loyal service. Effective immediately.

I was offered five months pay as a go away gift. All I had to do was sign a non-compete, thus rendering me unemployable in my field of expertise for a year.

When I found another job, the lawyers had to negotiate my release even though it was a very tenuous competition.


38 posted on 01/05/2023 9:07:57 AM PST by cyclotic (Follow 1776rm.com. Fighting for our Constitution. @1776RM on Truth)
[ Post Reply | Private Reply | To 9 | View Replies]

To: Alberta's Child

Yeah, sorry no.

A non-compete clause is an act of prior restraint. What I do after the employment agreement is ended is of no concern to my now former employer.

Too bad, so sad.

California got this one right when their courts decided that they will no longer enforce NCCs.


39 posted on 01/05/2023 9:09:34 AM PST by MeganC (There is nothing feminine about feminism. )
[ Post Reply | Private Reply | To 22 | View Replies]

To: RatRipper

I think the proper balance would be that companies would have to pay employees a big sum (six figures—one time payment) as compensation for signing such an agreement.

That would make the companies put their money where their mouth is—if they want to shackle employees let them compensate the employees for keeping their secrets.

My guess is that lower paid employees (for the most part) would then be freed from these non-compete agreements.


40 posted on 01/05/2023 9:12:28 AM PST by cgbg (Claiming that laws and regs that limit “hate speech” stop freedom of speech is “hate speech”.)
[ Post Reply | Private Reply | To 6 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-8081-92 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson