Non-Compete
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wrote on 20 Apr 2024, 14:59 last edited by
Great idea, and good for my daughter. I wonder how they feel about NDAs. In her industry they are very tight lipped about what they are doing for who. She can't even tell us.
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https://natlawreview.com/article/federal-trade-commission-vote-proposed-non-compete-ban-april-23
On April 16, the Federal Trade Commission (FTC) announced that it will hold a special Open Commission Meeting on Tuesday, April 23 at 2:00 p.m. ET, for purposes of voting on its proposed final rule banning non-compete agreements.
At that meeting, it is expected that the FTC will disclose the proposed final rule, Chair Lina Khan will offer brief remarks followed by a presentation by FTC staff, and then the Commission will vote whether to issue the final rule.
As we have previously covered in detail (here, here, and here) the FTC issued its Notice of Proposed Rulemaking in January 2023. The proposed rule in the form previously disclosed by the FTC for public comment would ban employers from requiring workers to sign non-competes and require recission of existing non-competes. The proposed rule would apply broadly, not just to all employees, but also to independent contractors and to any individual who works for an employer, whether paid or unpaid (e.g., externs, interns, volunteers, apprentices, or sole proprietors). It also would apply not just to non-competes that expressly prohibit a worker from seeking or accepting certain employment after the conclusion of the worker’s employment with the employer, but also to any contractual provision that functions as a de facto non-compete.
This is, potentially, a BFD for docs.
wrote on 20 Apr 2024, 16:06 last edited by@George-K said in Non-Compete:
ban employers from requiring workers to sign non-competes and require recission of existing non-competes.
Doesn't that take a bargaining chip away from the employees?
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wrote on 20 Apr 2024, 16:21 last edited by 89th
Interesting. A year ago I signed a non compete because there was drama with companies fighting over the same people. This would nullify my non compete, which I’m fine with. You can get paid more if the company knows you could switch easily to a competitor in the same space.
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wrote on 20 Apr 2024, 16:52 last edited by
Not unusual for medical practices to have a non-compete in their employment contract. Frequently, the radius was 10-15 miles.
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wrote on 20 Apr 2024, 17:24 last edited by Renauda
Years ago, a friend of mine was one among many laid off from some outfit after head office in the US decided close its office here. They were given two weeks in advance and non compete forms to sign or risk being fired on the spot. There was no compensation package offered as an incentive to sign. Everyone walked off the job on the spot. No one was left to fire.
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wrote on 20 Apr 2024, 17:46 last edited by
Non-competes are generally worthless if a former employee chooses to challenge them anyway. The only time that I’ve heard of them actually standing up to a court challenge was in the case of an employee taking his client list directly to a competitor.
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@George-K said in Non-Compete:
ban employers from requiring workers to sign non-competes and require recission of existing non-competes.
Doesn't that take a bargaining chip away from the employees?
wrote on 20 Apr 2024, 17:46 last edited by@Copper said in Non-Compete:
@George-K said in Non-Compete:
ban employers from requiring workers to sign non-competes and require recission of existing non-competes.
Doesn't that take a bargaining chip away from the employees?
Quite the opposite.
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Non-competes are generally worthless if a former employee chooses to challenge them anyway. The only time that I’ve heard of them actually standing up to a court challenge was in the case of an employee taking his client list directly to a competitor.
wrote on 20 Apr 2024, 18:11 last edited by RenaudaHere they only work or have teeth if the non compete is accompanied by a substantial financial payout to the employee.
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wrote on 20 Apr 2024, 18:29 last edited by
Has to be some form f compensation here as well.
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wrote on 21 Apr 2024, 02:00 last edited by
There must be some way to take into account not transferring company "secrets" and strategies. NDA's or non-competes do serve a purpose.
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wrote on 21 Apr 2024, 02:02 last edited by
Trade secrets can be protected, but non-competes are very hard to craft such that they will stand up. They have to be very narrow.
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Trade secrets can be protected, but non-competes are very hard to craft such that they will stand up. They have to be very narrow.
wrote on 21 Apr 2024, 02:19 last edited by@Mik Maybe trade secrets is not the right term, but I think that a person can gain a lot of company knowledge that would be very valuable to another company, even if it is not direct "quantitative" information, but more "qualitative" information.
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wrote on 21 Apr 2024, 03:06 last edited by
Yes, that will happen in the course of employment. But it should not keep you from seeking employment in your field. A non-compete is what finally led me to go out on my own in consulting. They demanded I sign one and I declined.
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@Mik Maybe trade secrets is not the right term, but I think that a person can gain a lot of company knowledge that would be very valuable to another company, even if it is not direct "quantitative" information, but more "qualitative" information.
wrote on 21 Apr 2024, 11:56 last edited by@taiwan_girl said in Non-Compete:
Maybe trade secrets is not the right term, but I think that a person can gain a lot of company knowledge that would be very valuable to another company
The situation in the medical field is quite different. The only "asset" you could probably take with you is your patient base. If you're someone without an office (radiology, pathology, anesthesiology) I don't understand why a non-compete would be justifiable, and yet, they exist.
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@taiwan_girl said in Non-Compete:
Maybe trade secrets is not the right term, but I think that a person can gain a lot of company knowledge that would be very valuable to another company
The situation in the medical field is quite different. The only "asset" you could probably take with you is your patient base. If you're someone without an office (radiology, pathology, anesthesiology) I don't understand why a non-compete would be justifiable, and yet, they exist.
wrote on 22 Apr 2024, 00:59 last edited by@George-K In your case, who would you be signing one with?
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@George-K In your case, who would you be signing one with?
wrote on 22 Apr 2024, 01:06 last edited by@taiwan_girl said in Non-Compete:
@George-K In your case, who would you be signing one with?
If your employer (group) had a non-compete, you'd have to find a job which is anywhere from 10-20 miles farther than your original place. Probably at least a 45 minute drive more.
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wrote on 4 Jul 2024, 02:45 last edited by
A federal judge in Texas on Wednesday partially blocked a U.S. Federal Trade Commission rule from taking effect that would ban agreements commonly signed by workers not to join their employers' rivals or launch competing businesses.
U.S. District Judge Ada Brown in Dallas said in a written decision the FTC, which enforces federal antitrust laws, lacked the power to adopt broad rules prohibiting practices that it deems unfair methods of competition. -
wrote on 16 Aug 2024, 01:22 last edited by
A federal judge in Florida has temporarily blocked a U.S. Federal Trade Commission rule that would ban agreements commonly signed by workers not to join their employers' rivals or launch competing businesses, becoming the second judge to rule that the ban is likely invalid.
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wrote on 16 Aug 2024, 01:26 last edited by LuFins Dad
Get your popcorn… my guess is that it ultimately gets overturned and the ban goes into effect.
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T taiwan_girl referenced this topic on 24 Aug 2024, 01:59