The FTC has banned noncompete agreements

The FTC has banned noncompete agreements(theverge.com)

33 points by nathan_phoenix 2 years ago | 8 comments

dev1ycan 2 years ago |

Good, I hope this trickles down to other countries that seem to just copy paste US laws like mine.

I have a non compete that bans me from working in my field for 6 months, like how is this legal? absolutely crazy how every company basically copy pasted that clause into their contracts.

jdougan 2 years ago | |

There is a reasonable legal argument that says it shouldn't be, unless you are compensated for the time (at least under anglo-american legal theory). As it is, courts will often dismiss "unreasonable" no-compete clauses, but you have to spend money on a lawsuit to get there. I'm not completely sure if the FTC is the right place for this ruling, but I'm not unhappy with it.

It appears to be a late 19th century phenomenon. https://scnoncompetelawyer.com/short-history-of-non-competes...

As some people have pointed out, the action will probably be moving to trade secret and NDAs protections.

NominalNews 2 years ago |

One of the best decisions made. Non-competes are harmful and the problem they claim to solve can be resolved in other ways.

NominalNews 2 years ago | |

Why economists are so critical of non-competes - https://www.nominalnews.com/p/to-compete-or-non-compete

moose44 2 years ago |

Dupe: https://news.ycombinator.com/item?id=40136010

maerF0x0 2 years ago |

I'm not always a democrat, but I do like the FTC under democratic presidency.

reureu 2 years ago |

Nice! Now ban NDAs when it pertains to claims of illegal activity including discrimination. I know there are some really fascinating stories floating around out there...

ChrisArchitect 2 years ago |

[dupe]