Submitted 4 months ago by jeffw@lemmy.world to workreform@lemmy.world
https://www.npr.org/2024/07/03/nx-s1-5020525/noncompete-ban-block-ftc-competition-ryan-texas
Federal judges have blocked so much progress that Biden has attempted to make. It’s absurd
Wow, the yoga example in the article is exactly why noncompetes are terrible. For those who didn’t read… A yoga studio owner didn’t like it when former employees opened up their own yoga studio nearby. So she added noncompete clauses to future contracts. In other words, she’s too inept to compete on delivering a quality product.
In other words, she’s too inept to compete on delivering a quality product.
That’s why all non-compete contracts exist, and the same reason they should all be illegal.
If you spend time training someone, and they can turn around and go off on their own, what do you bring to the table? Why should they work for you, giving you the fruits of their labor in exchange for less pay? If you’re worried about competition, don’t train your competition. Do it better than they do. You aren’t entitled to the value of a person’s life just because you contributed to their expertise.
It makes some sense that if someone is going to invest time and money into training you to help them, they would not want you to immediately turn around and compete with them. So in that regard I understand it. But they’re usually abusive contracts that last way too long, far beyond what is reasonable, and cover many activities outside of direct competition such as stating that you can’t even accept another job in the same industry.
So we shouldn’t value teachers?
Small government and free market!
Can’t have anything nice, can we? And why are the courts so corrupt? Because they are appointed by politicians?
Because they’re appointed by conservative politicians
How does this even work? How is a District Court judge in another state allowed to stop something before it is heard by a higher court? Do all federal judges have more power than the President?
Any federal judge can impact a federal action. Courts interpret actions (usually laws) from the other branches. A bad ruling will be overturned by an appellate court, which in turn could be overturned by SCOTUS
I actually like noncompetes. Your company has to compensate you full salary and educational courses including travel costs for the time of this noncompete agreement, which is actually quite nice.
If it worked that way in the US then that would be sensibly pro-worker while allowing the existing employer to defend their intellectual property and investments in employees.
The reality is I have a 2 year noncompete that simply prevents me from working for competitors within 50 miles of any of my job sites unless I want to open myself up to a lawsuit. If I left today, I’d have to travel way further to get to an acceptable location, but would certainly not be receiving any compensation for that hassle from my previous employer. The elimination of noncompetes would be a huge boon to me and my colleagues, but this sort of court shenanigans is why I said I’d wait to be excited until it actually took effect.
Honestly I think instead of banning non-competes they should just make it a hard requirement that a non-compete must be X percentage(no smaller then 50%) of your salary per year for the non-compete so for example if you made $60,000 and, and it was a 2-year agreement then you would get $30,000 a year. Which in my opinion is fair because the entire point of a non-compete because you know information that a competitor could use that would give them a financial advantage so it makes sense that they would have to pay for your silence that you’re not going to give that information away. If a company is saying they’re not willing to pay that money that means the information you know isn’t enough for them to care about so a non-competient be in place in the first place
To be more specific than the other responder, a noncompete does not include training. You could hire a senior staff member who is already experienced and include a noncompete. There is very little regulation. If it was tied to training for a set time, it makes sense. Unfortunately in the US, it usually doesn’t.
This is about the US
Corigan@lemm.ee 4 months ago
“Did the federal government make a change for the benefit of the people, and might be an inconvenience to business… never fear there’s a judge in Texas to stop it and later when it gets appealed to the supreme court overturned!”
Why do I feel like we are held hostage by judges lately? Aren’t they supposed to be unbiased and apolitical. Seems to me they should lose their appointment if they can be shown to have political motivation/ baises
Zachariah@lemmy.world 4 months ago
actual activist judges
MelodiousFunk@slrpnk.net 4 months ago
You know, the projection the wingnuts have been crowing about for decades.
blusterydayve26@midwest.social 4 months ago
That’s specifically why the complaint was filed in Texas. Saner districts might’ve decided against the plaintiffs, like in California, where they’re unenforceable, IIRC.