this post was submitted on 23 Apr 2024
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The Federal Trade Commission narrowly voted Tuesday to ban nearly all noncompetes, employment agreements that typically prevent workers from joining competing businesses or launching ones of their own.

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[–] [email protected] 192 points 6 months ago (6 children)

Is this as big as it sounds? It sounds big.

[–] [email protected] 42 points 6 months ago (1 children)

When places talk about how they’ll be “the next Silicon Valley” this is one of the reasons none of them have actually managed it. In CA people in many cases can take a good idea that their employer doesn’t want and do something with it themselves. In most other places it will get so tied up in non competes that it’s not worth the effort to even try.

And it’s not just tech, here in Colorado we recently had a restaurant try and shut down another restaurant simply because the newer place’s chef had worked at the older place. They settled but it’s so entirely ridiculous that it could have even started court proceedings in the first place.

[–] [email protected] 13 points 6 months ago

Forget ideas, just normal worker mobility. A couple of years ago I switched jobs.

The old company had gotten bought by a conglomerate and they were milking the product line by stopping development, stopping raises, and letting attrition do its thing. Time to leave. One of my peers found a great company still investing in their products and jumped ship. Me too. However we both had noncompetes specifically prohibiting “poaching”, so could we even talk to co-workers? Everyone lost because of this noncompete. New company missed out on potential new hires, co-workers missed a potential opportunity, and even old company attrited slower than otherwise so less profit

This is a classic case of noncompetes blocking worker mobility, hurting everyone

[–] [email protected] 5 points 6 months ago

Yes big deal. However, I'm not sure if this will survive the supreme court.

[–] [email protected] 8 points 6 months ago* (last edited 6 months ago) (1 children)

Is this a big deal in terms of allowing people to more easily quit their jobs and take new ones? Yes.

Is this a big deal in terms of boosting innovation and economic productivity by allowing ideas to move more freely between businesses? Maybe.

Is this a big deal in terms of harming businesses or causing radical shakeups at businesses? No. States like California already ban non competes as do most western countries, companies just keep on going, truly proprietary innovations are already going to be covered by NDAs.

[–] [email protected] 7 points 6 months ago

Is this a big deal in terms of allowing people to more easily quit their jobs and take new ones?

Now do healthcare.

[–] [email protected] 51 points 6 months ago (1 children)

100%. These non-competes essentially lock employees in to their existing employer, unless they want to find a job in a completely unrelated sector (and likely take a massive payout, which, especially these days, is near financial suicide). This will have enormous ramifications for companies with toxic culture, as now people don't have to put up with their crap. This allows for freedom of economic mobility, and more control of one's own life.

[–] [email protected] 10 points 6 months ago (2 children)

I’m going to go against the crowd and say that while I think it’s a good move to make it official non competes were effectively already declared unenforceable via the court system. It’s rarely used for the average worker unless something truly fucky was going on and the courts would usually side with the employee no matter what unless something truly fucky was going on.

[–] [email protected] 5 points 6 months ago* (last edited 6 months ago)

The threat of lawsuit is usually enough to get an employment offer rescinded. It's rare for a company to want to take on a legal defense just to hire someone new. Even though they weren't actually legally binding, non-competes still limited options for a lot of people.

Overall I agree with you that this isn't as big of a deal as people make it sound, but it's easy underestimate their influence if only looking at the result of cases that go to trial. In many situations, the damage is done well before a case can go to trial.

[–] [email protected] 30 points 6 months ago (1 children)

Even if unenforceable, they likely had a huge chilling effect. Most people understandably prefer not risking going to court, even if they're in the right.

[–] [email protected] 2 points 6 months ago

Right, I can’t afford to take a corp to court, even if I would win.

I can’t afford to have my new employer balk at hiring me if they don’t want to risk defending themselves, even if it doesn’t happen often

[–] [email protected] 127 points 6 months ago (2 children)

18% of all working people in the US are under non-competes. This is a huge deal.

[–] [email protected] 7 points 6 months ago

I've had places try to make me sign a non-compete agreement as a chef. I straight up told them that their agreement wasn't even useful as toilet paper. Signed anyway, and worked for them for a few months, then moved on to a better paying job.

[–] [email protected] 34 points 6 months ago (1 children)

I honestly assumed the number/percentage was higher

[–] [email protected] 32 points 6 months ago (2 children)

Yeah, even hotel housekeepers sign papers saying they cannot quit and go to work for competitors these days.

[–] [email protected] 8 points 6 months ago

In California none of this shit is enforceable anyway.

[–] [email protected] 2 points 6 months ago (1 children)

How recent is this? I'm asking because about 10 years ago, I worked for a local TV station owned by a massive media company and not only did I not sign a non-compete, I left them for a better paying job at the other local TV station owned by a different massive media company and they didn't make me sign one either.

Both jobs were utter shit, by the way. I'm not defending them or the shitty stations or the shitty companies. I'm just surprised.

[–] [email protected] 3 points 6 months ago

Idk I was making a metaphorical analogy, I'm neither a housekeeper nor a housekeeping data analyst.