The FTC banned noncompetes. Will it survive corporate challenges?
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- Опубліковано 28 вер 2024
- The Federal Trade Commission voted to ban nondisclosure clauses for all U.S. workers, which the FTC chair argues "keep wages low [and] suppress new ideas." In response, the U.S. Chamber of Commerce filed a lawsuit to block the regulation, claiming the ruling sets a dangerous precedent. Business and employment attorney Andrew Botti joined Crystal Haynes along with Terri Gerstein, director of the NYU Wagner Labor Initiative, to debate what this means for workers and their employers in Massachusetts.
00:00
:48 How is the FTC ban on noncompete clauses a win for employees?
2:15 Why is the FTC's ban, which it claims will raise wages, a bad thing?
6:27 Do you think keeping the noncompetes will benefit small businesses?
10:02: Does the FTC have the authority to make this decision?
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My wife has a non-compete banning her from working within 2 years for several of her company’s big competitors. It makes it very difficult for her to find a different job in her industry, and her employer knows it. Corporate greed, plain and simple.
Corporate America is like the old aristocrats, holding on to their wealth by setting rules preventing other people from spreading their wings and creating.
It is about time, employee at will should go both ways!
I've had noncompetes at several jobs. They don't try to make it apply to their direct competitors, they try to make it extremely broad. They're hiring me because I have a set of skills, but they don't want me to be able to use those skills after I leave. I'm an iPhone developer, was hired by a company because I had 10 years of experience, but wanted me to sign a noncompete that would have prevented me from doing any iPhone development for the next two years! I agree with the comments here, that if it's IP they're worried about, that's what NDAs are for. I support the ban on noncompete agreements...
Why should an employer have control over an individual’s destiny? Non-competes are harmful to employees. Why should I have to go to court to prove why I should be able to quit my job to become gainfully employed elsewhere?
Non-compete clauses are completely at odds with the principle of at-will employment. At least it should cut both ways: if an employee is fired, the company isn't allowed to hire anyone to replace them!
If you must have a corporate apologist on the show can you pick one who does not resemble a Weisswurst being extruded from an ill-fitting shirt?
Weisswurst 😂
non compete should not exist it hurts people. doesn't matter the number. companies have no right to enslave employees.
In regards to Intellectual Property (IP) Protection - this has no business being in non-compete agreements and should instead be in non-disclosure agreements (NDAs).
You can switch jobs, bring your EXPERIENCE to your new employer, but keep IP at your old employer. This is not a problem.
If I had malicious intent and shared IP with my new employer, I can then be prosecuted via the NDA.
It's called a non complete clause for a reason. It stiffels competition. The companies and company Men want capitalism and competition when it benefits them and they want to ban it when it means protecting their money. Non compete clauses are not capitalist
The problem is that industry can’t be trusted to self-regulate, so you have people forcing non-competes onto employees who have NO trade secrets or sensitive information. Companies that fight this are simply unethical.
Non compete=don’t start a competitive company once you learn the industry=no price competition or innovation= end of capitalism.
Only CEO’s should adhere to NC’s
Mass has had a non compete since 1811? How is that possible when I work for a tech company in Mass and had to sign a noncompete in 2020? Hmmmm something ain't right here.
If this clown says that the FTC (a government entity) should not have that power to ban non competes then no private/public company should have that same power to ban an individual from switching jobs.
This guy is just a liar. He lost the argument
That's a convenient way to dismiss anyone who disagrees with you.
@@Meton2526he is providing data that supports his viewpoint. Are you supporter of non-competes?
@@merrytunes8697 Who is providing data that supports his viewpoint?
I support free markets that are unencumbered by arbitrary government restrictions on what form of contract consenting individuals may engage in.
I work in IT and have at times been under non-compete clauses, and did not see any problem with them since I understood the ramifications and considered the costs and benefits of the overall contract before I signed. I did not need big daddy government telling me what I was and was not allowed to agree to.
@@Meton2526 what is the purpose of a non-,compete?
@@merrytunes8697 To put micro-economic pressures (via legal enforcement,) against an individual learning trade secrets and practices that are an advantage for the business, and taking those secrets to a competitor.
What does Silicon Valley have to do with literally anywhere else? Seems like cherry picking. She should have challenged him on that
There really isn't an argument besides allowing large businesses to control the lives of their employees more to be against non competes.
STEM fields, the smart intellectual ones, always in corporate competition
Free market for me, not for thee - Corpos
A employer can train an employee at no cost, only to lose them to their competitors. Now training may be an added cost to the employee.
People love to talk about free market capitalism- until employees get some leverage. Non-competes need to go.
I am for non competes as long as it goes both ways... fair is fair, contracts should assume equal partners. That being said IP theft is a thing and a punishable crime, get your patents and defend them, and if you cannot patent provide the best compensation and work enviroment.
We sign NDAs. That should be enough.
@@merrytunes8697 Agree but if it is patentable this is the best added protection against same but different.
@@EthelbertCoyote you realize non-competes for non C-suite employees is a fairly new concept, right? Now, C-suite employees have reversed these rules so they can leave with a crap ton of true trade secrets and a golden parachute because they can afford the lawyers to review the employment agreements and advocate on their behalf. Non-competes are another way to keep the middle and lower class begging for crumbs. Most non-competes stipulate you can’t even start your own business. What kind of sense does that make?
Terrible idea, why not just set some limits in problem areas like discussed. I will tell you why, that would take work and people are lazy.
I get how this benefits employees, but how does this benefit the FTC? If you don't get that higher paying job, someone else (ie. no loss in taxes)
The FTC is not looking to collect taxes (that’s the IRS). The FTC tries to maintain fair market conditions, including fair competition.
Wikipedia describes it as “an American antitrust and consumer protection agency”.
@heinzotto1194 thanks, I get that taxes are collected by the IRS. Just wondering what prompted the FTC to pass this? Maybe inflation, etc and inability of people to change jobs. Just curious.
Big picture. Probably because some states have non-competes and some states don't. Inconsistency across the country may not benefit the overall economy.
Great work by the FTC, hope it stands up.
People you got to read between the lines the first words he saying he’s undermining the numbers of statistics second thing he’s taking cherry, picking statistics from 10 years where everything was slower stifled
If this goes to the Supreme Court, they BETTER not be EXTREME JACKASSES AND STRIKE IT DOWN
I'm a worker under a non-compete. I work in small business. I think it's nice that it helps the employer, but it all comes at the cost of the employee.
If I sign a non-compete next time whenever I quit my job, I better be getting a paycheck every month for not being able to work a job in the field I do
In a state like Colorado, we still haven't really seen what the impact of a noncompete ban can create on the economy. Even though they got rid of noncompete agreements a while back, agreements that were entered into before they implemented the ban were still valid. I believe the vast majority of employees who wanted to go to a better employer or start their own business, never had a chance to even with the ban in place.
What does it mean for MLM workers that are 1099?
Funny how the FTC thinks they have legislative powers.
Funny how corporations think they can enslave people
This should not be a federal law. Leave it up to the states.