Senators propose near-total ban on worker noncompete agreements

A noncompete ban has served Silicon Valley well. Should it apply nationwide?

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[wk_]

How did noncompete agreements ever become acceptable in the first place? They seem like a pretty blatant symptom of unequal bargaining power. "Sure, I'll give you control over myself for two years after I stop working for you!"

Do other countries also allow noncompete agreements or is this another case of "American exceptionalism"?

We have non-competing agreement in Serbia, allowed by our Labor code, probably a copy-paste solution from some EU recommendation. The main point is if they want to enforce it, they have to pay me during the time I'm not allowed to work for the competition.

 

[wk_]

This is a way overdue piece of legislation. My wife works as a pre-school teacher, and her last two locations have required a “non-compete” which has limited her ability to move up into better jobs at higher wages at times. I had to take the last one to a lawyer who called it totally unenforceable. Anymore “non-competes” dont protect intellectual property or knowledge, they end up being intimidation tactics. Toss them out.

The trouble with "unenforceable" clauses is that employer basically tries to intimidate you. It is way easier for companies to go to the court than to employees. Even if you win, you will get into financial problems.