Non-Compete

[Renauda]

@LuFins-Dad

Here they only work or have teeth if the non compete is accompanied by a substantial financial payout to the employee.

[Mik]

Has to be some form f compensation here as well.

[taiwan_girl]

There must be some way to take into account not transferring company "secrets" and strategies. NDA's or non-competes do serve a purpose.

[Mik]

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.

[taiwan_girl]

@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.

[Mik]

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.

[George K]

@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.

[taiwan_girl]

@George-K In your case, who would you be signing one with?

[George K]

@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.

[George K]

https://www.npr.org/2024/04/23/1246655366/ftc-bans-noncompete-agreements-lina-khan

[taiwan_girl]

https://www.reuters.com/legal/us-judge-blocks-biden-administration-ban-worker-noncompete-agreements-2024-07-03/

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.

[taiwan_girl]

https://www.reuters.com/markets/us/second-us-judge-blocks-ftc-ban-worker-noncompete-agreements-2024-08-15/

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.

[LuFins Dad]

Get your popcorn… my guess is that it ultimately gets overturned and the ban goes into effect.

[jon-nyc]

Had drinks with my old Credit Suisse buddies last night. It got me thinking about this topic, because I like the way the banking industry handles it. The typical non-competes stops you from working for a competitor for 6 months.

It seems to strike a good balance - it inhibits you from bringing leads from one employer to another, gives the ex-employer time to have new employees build relationships with your old clients, while not banning you from working in your own industry.

The phrase they use is ‘gardening leave’. You get an offer from a new bank and quit your job, and have six months to tend to your garden.