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Noncompete Rule
FTC.GOV ^ | 4/23/24 | Unknown

Posted on 04/23/2024 3:48:36 PM PDT by TermLimits4All

Under the final Noncompete Rule, the FTC adopts a comprehensive ban on new noncompetes with all workers, including senior executives. The final rule provides that it is an unfair method of competition—and therefore a violation of Section 5—for employers to enter into noncompetes with workers. Note: The regulation's effective date is 120 days after Federal Register publication - not after the FTC's public announcement.

(Excerpt) Read more at ftc.gov ...


TOPICS: Business/Economy; Chit/Chat; Miscellaneous
KEYWORDS:
Well I for one, as a business owner, am perfectly fine with this. I have been on the losing end of a non compete when I left a former employer and started a competing business. I’m currently still unable to earn a living within a 50 mile radius of my home address until July of this year. So I travel for roughly 2 plus hours just to be able to put food in the table for my family. It’s ridiculous, especially in the construction industry. Thank God the a-hole that sued me will never be able to do that again.

I’m curious in whether a legal settlement at mediation is an accrued cause of action or if filing the lawsuit against me was a cause of action, or if neither are causes of action.

1 posted on 04/23/2024 3:48:36 PM PDT by TermLimits4All
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To: TermLimits4All
From the Crain's New York Business piece:
“The administrative state cannot legislate because Congress declines to do so,” Ferguson said.

In a call with reporters Monday, the Chamber’s Chief Policy Officer Neil Bradley said the FTC doesn’t have the authority to issue the rule.

‘Micromanaging’ economy

The rule “opens up a Pandora’s box where this commission or future commissions could be literally micromanaging every aspect of the economy,” Bradley said. “Agencies can’t exercise authority that Congress hasn’t given them. Congress has not given the FTC the ability to write regulations with respect to competition.”

My premise: Nothing the Biden administration pushes is good for honest Americans. [Emphasis added].
2 posted on 04/23/2024 3:54:42 PM PDT by xoxox
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To: xoxox
Crain's
3 posted on 04/23/2024 3:55:28 PM PDT by xoxox
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To: xoxox

I wonder if they included the NC I signed for them.

I ignored it anyway. But still.


4 posted on 04/23/2024 4:12:56 PM PDT by Celerity
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To: TermLimits4All

I always thought it as very anti capitalist. Glad to see it tossed.


5 posted on 04/23/2024 4:22:53 PM PDT by napscoordinator (DeSantis is a beast! Florida is the freest state in the country! )
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To: TermLimits4All

Long overdue.


6 posted on 04/23/2024 4:54:01 PM PDT by Reno89519 (If Biden is mentally unfit to stand trial, he is mentally unfit to be president. He needs to resign.)
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To: TermLimits4All

In 2008 I lost my 18 year career at a company due to reorganization. They offered me six months severance by signing a one year non compete.

Had I just quit I could have done anything I wanted.

The time for a non-compete s when they hire you, not when they’re getting ready to jettison you.

I found another job in the industry in three months. Lawyers from both companies fought over me for three more months then the old employer gave up.

They were also in the middle of a huge liability suit and didn’t have time to worry about me. (They paid out big time. Not duentonguilt but due to deeper pockets. I almost felt bad for them)

That said I understand the need. But a NDA seems far mo tree valuable than a non compete.


7 posted on 04/23/2024 4:59:24 PM PDT by cyclotic (Don’t be part of the problem. Be the entire problem)
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To: TermLimits4All

Using Contract law to prevent competition has its limits here.

The Government is being used in this case either way, so I’m in favor of what ennables freedom and market competition.


8 posted on 04/23/2024 5:01:20 PM PDT by Bayard
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To: TermLimits4All

Had non-competes on me for most of my career. It was the only thing that kept me from going to work for the biggest competitor when an employer would scr*w me on the way out the door. They were used big time against salespeople, and used to get away with avoiding paying commissions on made sales without having to worry that I would go to a competitor and pull the sale over. I lost over $1M in commissions over my career to shady business owners and the non-competes kept me from being able to do anything about it.


9 posted on 04/23/2024 5:43:57 PM PDT by RainMan ((Democrats ... making war against America since April 12, 1861))
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To: RainMan

Yep. Same story with my situation. Can’t wait until July.


10 posted on 04/23/2024 5:47:00 PM PDT by TermLimits4All ("If you stand for nothing, you'll fall for anything.")
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To: TermLimits4All

This whole thing reminds me of this scene from Madmen.

https://www.youtube.com/watch?v=Y0PTIo-73_g


11 posted on 04/23/2024 6:53:23 PM PDT by Dr. Sivana
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To: TermLimits4All

I’m on the side of those who want to make non-compete clauses weak, but NOT at the expense of allowing unelected bureaucrats to make such sweeping changes on their own initiative. They are our hired help. They should do NOTHING without the explicit permission of our elected representatives.

Moreover, this is manifestly an issue for state and local governments to deal with, unless the agreements cross state lines.


12 posted on 04/23/2024 6:58:04 PM PDT by ccmay (Too much Law; not enough Order.)
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To: RainMan

Broadcasting has had noncompetes for decades. You work for a radio station, you get let go for whatever reason, be it personal, format change, argument with management, or whatever, and you can’t work in the market you live in for “X” period of time. So many folks I personally know had to sell homes and move because they couldn’t wait a year to earn a paycheck.

Noncompetes in my industry also hurt sellers. Sales is all about relationship building with clients, and one day you’re let go or the competition offers you far better commission rates and you cant work in broadcast sales for “X” months / years. At least sellers can sell in a different industry.

So I’m thrilled that noncompetes are going away. The best talent will be free to market their talents to those who are willing to pay the most for it. And those sick of lousy operators can go across the street and not have to sell their homes or burn through savings for a year.

I had a particularly despotic radio owner approach me with a noncompete two years after I started working for him. I refused to sign it. He huffed and puffed and threatened, but I had a very nighly rated morning show and he couldn’t let me go, lest he flush his moneymaker. And when his overall attitude went from worse to insufferable, I was free to take my talents across town and he couldn’t do a thing to stop me. And my new paycheck was FAT!!


13 posted on 04/23/2024 7:48:18 PM PDT by VideoPaul
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To: TermLimits4All
Thank God the a-hole that sued me will never be able to do that again.

The can't compete no longer saddled with a non-compete. What's changed?

14 posted on 04/23/2024 9:04:53 PM PDT by Ahithophel (Communication is an art form susceptible to sudden technical failure)
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