Non-Competes Ruined Your Career... Now They Are Banned
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- Опубліковано 29 тра 2024
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Corporate America just lost one of its most powerful tools to keep people from getting better jobs.
Non-compete contracts that ban workers from finding a better job have been used to keep wages low, and even if you have never personally signed one of these agreements, they will almost CERTAINLY still be hurting you. Late last month the FTC banned these deals from being put into the contracts for MOST employees, and most existing non-competes will be phased out over the next three [3] months…Unless you run a business that relies on keeping employees in bad conditions for poor pay, this ruling will be good for you.
But… that doesn’t mean that corporate America is going down without a fight.
A non-compete agreement is a condition in a contract which bans an employee from working for a competitor company for some amount of time after they quit or get fired from their current position. Companies claimed that these terms were very important because they didn’t want to spend time and money training staff, and giving them proprietary information, just for them to get a job with their competitor and take all that valuable information over to them.
They have also said that without non-compete agreements their competitors could “free-ride” off them by just poaching their staff after they have made the investment into hiring and training inexperienced workers. The Federal Trade Commission and its controversial new chair Lina Khan have basically called this out as complete bull. In their announcement non-compete agreements being put into employment contracts, the FTC also said that even if this does hurt some big businesses that’s actually a good thing. The free-rider argument doesn’t really work because, those businesses could also attract their own talent from their competitors TOO, all they need to do is give their employees a more attractive job offer and most people are happy to switch jobs… f people do take company information with them, the FTC argues that the only group this is bad for is a company that doesn’t want to compete. Most successful companies are started by people who were previously employees working for a company in the same industry.
Gary Tann the CEO of Y-Combinator an early stage startup incubator has said that the best companies he deals with are ones started by people who first gained experience in the industry they want to disrupt, by working in it… The Federal Trade Commission estimates in their report that this new will lead to the formation of at least eight thousand five hundred [8,500+] extra businesses every year, and between seventeen thousand, and TWENTY NINE THOUSAND [17,000 - 29,000] new patents every year.
According to the organizations research these are all currently being blocked because people aren’t legally allowed to innovate or start a business. The only people that lose in this situation are the companies that don’t want to compete, which is why it’s the FTC not the Department of Labor that made this ruling. The FTC is normally the organization in charge of making sure that businesses aren’t forming monopolies. It does this by blocking mergers or acquisitions that would give the new mega corporation too much power. In the last three years FTC has been trying their best to stop some large company mergers but they have so far lost all of their recent cases in court, allowing the mergers to go ahead. The FTC can also break up companies that have too much market power but it hasn’t done that in over FOURTY YEARS…
So what the FTC really does most of the time is make rulings like, non-compete agreements being a form of anti-competitive practice, which is illegal. You wouldn’t think this would be a hard case for them to make since the words non-compete are right there in the name, but the FTC is already being sued over this ruling by an industry body representing companies.
But let’s be honest with one another, even though the companies and the FTC won’t admit it, non-compete agreements were never about competition between one company and another, it was about competition between a company and its employees.
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Non disclosure agreement
I swear mc donalds your absolutely disgusting o right my diet caused me to have problems with salt/sugar and refuse to pace myself anyway even tho having all the data shown to me while us body builders have to suffer who take care of ourselves have to suffer because of you
2 million dollar settlement goes to doing what making you a burden on society i thought it was to help you be less of a burden when the statistical norm turns that money into our problem sounds like how we fail people thru failed prospects
2 million to drink yourself our problem maybe that 2 million can be put into prevention as a society o right im speaking conservatism because that isnt something we need a functioning member of while their all off quacking off to trump
Same for lobbying and corporations owning houses.
Companies complaining about losing valuable information in their business.... meanwhile collecting and selling all of it's users information is funnily ironic.
How else do you think these companies would make money? You seem to be referring to companies like Facebook, how else would they make money and offer a free platform to billions of users?
@@GatofindsAre you just looking to start an argument even if what you say is true it doesn't make the other guys statement false
@@GatofindsAdvertizers... this isnt even a complicated question. Advertizers.
@@Gatofinds Is your argument "well yeah, Facebook gets to have their cake and eat it too, how else would they operate and make money?"
Like, here's the thing, they can sell the data lol.
But don't get all precious about your own now, Facebook.
@@charlesatanasio Advertising itself is not enough to be sustainable.
Corporate apologists will argue "if you don't like your job, leave" Well people couldn't before but sure can now.
You know, that's what really grinds my gears about the falseness of their arguments.
It's quite simply "fuck you and learn your place" but veiled behind a bunch of bullshit excuses and "suggestions" that aren't even real advice lol.
@@brad1426 Its the illusion of the free market. It's like everyone that argues against a minimum wage saying "let the market decide" and then do everything that can to manipulate that market.
Not to mention the fact that people get stuck with health insurance.
@@TheDaxxC
I wish people pulled their head out of their asses and relized this. Do people not relize how expensive health insurance is? The data says that nearly 50% of Americans do not have health insurance, and almost all the ones who do have it got it through their job.
Now imagine you're a single parent with three kids and one of them gets sick, like really sick but you don't have health insurance....
Oh, yeah, sure, lemme just leave my job for which very few employers are even around to hire, much less would consider me. Then throw in a NCA and now I'm not only leaving that job, I'm leaving town entirely. Not an option in my position.
mind-boggling how such a criminal thing was allowed for so long..
It always starts with reasonable intentions being hijacked for greed
@@luisfilipe2023 Yep, it started out as a thing for executives for good reasons. But without a law banning it for everyone else...the people who could decide to use such a weapon, the executives, also knew about it.
Lawyers knew how awful these are. Conveniently, they made sure they were exempt from non-competes in every single state. It sort of exists due to conflict of interest rules, but that isn't the same.
Then to finish the job, you have a bunch of terrible judges that rules that continued employment is sufficient payment to be a valid contract. Which makes no sense in 'at will' employment because they can still just fire you immediately after signing.
People in America are way too lenient and confident in corporations. Temporarily inconvenienced billionaires indeed
Well by definition, it wasn't illegal at all, so it wasn't "criminal"
If everyone does it then basically everyone has lobbyists bribing politicians to not do anything about it.
It's gotten totally out of hand.
My friend works with special needs kids.
It's only a $30k/year kind of job.
She has a non-compete.
I had to sign a non compete when I became a manager for a janitorial company twenty years ago while in college. Apparently mopping the floor and dusting the cubicles are very important info and skills that they needed to keep in house lol
If a company treats you as their intellectual property and wants you to overwork with bare minimum pay then that's SLAVERY
Bruh and Bruh to the reply above me... The audacity of these companies!
There are martial arts schools that have their employees sign non-compete agreements.
This is why government regulation is always needed, because if they're allowed to, companies will act in their own self interest, often regardless of the impact on workers and/or the market.
How was this ever even legally enforceable, you are an employee not a slave.
My understanding is that it actually wasn't in most cases, but the threat and possibility of litigation served to stop people from trying.
@@thrashergx4877My understanding is it started with positions where this kind of contract made sense like High up leader positions.
Then it got expanded to just about everywhere and when some fast food places tried to use it to stop teens from job hoping lawmakers began the conversation to this change.
Baby boomers. They started businesses when there was next to no competition. So, when the most selfish self serving entitled cockwad of a generation got in power they made it a point to make sure no one else could compete with their authority.
It's why our country is in complete shit. Weve been ran by the same selfish and corrupt generation for 70-80 years. An entire life time of corrupt politicians/CEOs.
they're too busy with their business to focus on ex employees. This is more like scare tactics I think.
@@thrashergx4877I don’t know the exact numbers of how often they were utilized, but I have read about a lot of horror stories. People moving to a new state and getting a job in a similar field. The company they left tracked them on InDeed, called their new employer and threatened to sue the new employer for violating the non-compete clause. Then new company fires the new worker to avoid time and money wasted on litigation. Some workers have even had to switch to entire new industries.
They used to have them in IT but the courts ruled they were illegal a number of years ago. Glad to see it being expanded.
It's funny, cause companies and organizations act like it's still in place. The sheer amount of companies using CMS for their programming needs should show you that companies and organizations still think Non competes still exist.
its funny that I still see Companies include a non compete clause in their hiring contracts for IT. I will laugh the day one of them tries to enforce it on me.
Most non compete clauses are used against fast-food service workers changing jobs. They're been extremely effective in keeping service jobs wages very low.
Non-competes for IT (and other industries) are still enforceable in Rhode Island (this new FTC ruling not withstanding)
@@NorthVandeamore reasons to leave my crooked state 😍
Laughing at all the executives crying over this 😂
Won't someone please think of the executives!
@@HowMoneyWorks You think this is good, but you'll see.
This reminds me of the South Park joke about Lars Ulrich of Metallica game saying they were being stolen from by Napster.
Stan: Why is he crying?
Cop: because of illegal downloads he is going to have to wait a whole month until he can get his gold plated swimming pool.
Stan: *genuine shock and horror* that's awful!
@@ReKonstructorDisruption is how the market grows, stability isn't as good as people think.
@@ReKonstructorlol, I am interested in what the resistance is going to look like... But this action isn't some sort of minimum wage increase. Aka something that doesn't actually benefit anyone, including the intded people, except for large businesses who use this to bully small businesses out of the market - all the way the cost of living catches up and exceeds percentage wise the increase.
The FTC did a pretty damn good job (in my opinion) and putting safe guards in place for corrupt companies trying to abuse this ... Which should e happened when laws were put into place companies HAVE to offer lunch forcing people to stay at work for 9 hours instead of 8.
My point being, the FTC seemed to have actually been conscious of companies trying to use this as a new means of abuse and out in counters to those abuses.
Ie... Make everyone execs to out them on non competes... Well ya gotta be paying that person so much it would put them in the top 10% of the US's wages to even get that to work.
We will probably see a lot more NDAs and suing over that, but they're not noncompetes.
Businesses don't care if their employees survive or do well in the long term. Why should an employee reciprocate?
they treat us as disposable, this system is stupid and needs an overhaul. I'm looking for employee-owned companies and cooperatives to work at.
@@hackmedia7755Good luck the only ones where I life are much like the unions very hard to get into without some help from within. Think my dad put it best when helping me with the paperwork for the failed application. "So they say they are losing 80 guys a year due to old age an retirement but they only let in 40 new students in there training program a year... Ya they aren't actually hireling"
@@hackmedia7755or hear me out... You start your own business. Be your own boss.
@@hackmedia7755If the employees owned the companies then why would anyone try to create their own company? Someone else could just take it from them? As much as I hate our current system I can’t imagine a way to execute this method you’ve described.
@@Einsteinium. i think there is a middle ground between communist workers own compaines equally and capitalist union busting and malpractice. In germany this is solved by having "Betriebsräte" a commitee elected by the employees to represent their interest in business decisions that affect them. Its definetely not perfect, it make some processes really tedious, but in general workers are treated better in compaines with such a comittee than in compaines without them. You can also do this by pooling employee stocks into one representative body so that not only capital interests are represented on a shareholder level. You will still benefit from starting a company, but employees just need to be more represented.
Banning non-compete agreements is a massive step towards empowering the workforce and promoting healthy competition. Investing in employees' growth rather than confining them under restrictive contracts is the best way to thrive in today’s dynamic market.
can we eliminate restrictive union contracts as well. they stifle innovation by using protectionism and make companies uncompetitive.
@@ronblack7870that needs too. Unions are also anti business as well as anti consumer and only care about their self interest but they have a large lobbying power too so it will be tricky
@@ronblack7870 these conversations are usually one-sided, don't expect employees to ever see eye to eye with their employers.
ok chatgpt
Now the FTC just has to start breaking up companies that are buying up everything around them and closing out competition.
So many employers don't actually train their staff any more. Surprised this took so long....
We just sort of get told to do something,
and when we do it wrong, those with the company just talk about how we doing our jobs wrong behind our back,
This ill-trend is not only in US but in many countries as well. Especially in overpopulated country like Indonesia (mine). I remember that my father generation who reached their mid 20s in 1990s were not required of any job experience prior, received job training, also a permanent contract. So my father generation are able to buy house and raise a family just from that job income. Now even entry level jobs require minimum 1 year of experience, then there is ageism (no more than 25 yrs old), and then no training, plus less job security (can be fired anytime).
HRDs view their employees as disposable because plenty of young unemployed people out there waiting just to get a minimum wage job even if that means they will be exploited.
@@InterdactedI detest when companies do this! Setting their employees up for failure!
@@Etendard1708peak rat race
When you have 100s of applicants for every one decently paying white collar job, then the company doesn't need to worry about training, because chances are that one of the 200 has already been trained and has already worked and been vetted in their industry. Companies nowadays have access to the profiles and resumes of hundreds of qualified people, so they don't need to really train, because they just need one out of all those applicants to have already worked a similar job.
As someone who was previously had an employer cause me severe mental distress by trying to sue me over a non-compete clause that was later ruled unlawful, the banning of these corporate weapons is ONLY a good thing. Learn to compete the treat your employees like more than disposable widgets and you'd be surprised how little you'd need these clauses to begin with.
But treating my employees like real ppl means less money for me :(
I still have PTSD over my former employer threatening to sue my new employer, and my new employer almost backing out of the deal because of the threatening. I got a lawyer and it turned out the whole non compete was BS and unenforceable. I had a judge comment, "Who do they think they are? That you are some kind of indebted servant?" I was in limbo without a job for about three weeks (with a family and bills due facing the prospect of not being able to get another job for more than a year.)
God forbid a company pays you more than a penny a hour to keep you lol
Getting out of my non compete allowed me to 4x my income. One piece of paper stifled the careers of millions of Americans. Pay your employees of compete with them
You could just ignore it, who the hecc is going to hecking enforce it.
@@PapaBeastA If you do get sued, it’s not that you’ll lose the case, it’s that you have to hire a lawyer and that costs a ton of money. I was quoted $15k if I had to litigate mine
I dont believe you. The non-compete didnt hold you back, you thinking it mattered did
The whole point of capitalism was competition, so now companies actually have to adhere to that principle and work to keep and retain the employees they have now. They have to adapt or see their top talent leave. They can no longer have abusive dependent relationships with their employees. Non-competes for toxic companies is basically how they stay afloat. Now they actually have to get better or sink
@@colechapman6976 This is what I was looking for sometime capitalism nees some interference to force it to work
They can talk about how much they've invested in my training when they cosign my student loans.
These companies are already whining about how gen z won’t be their slaves, and now they’re whining about the law that will make it so they can’t force their current employees to be slaves either
Don't worry buddy, gen z is getting replaced by millions of illegals floding in per year over the last 50 years. You can rest assured, you will have no bargaining value for your labor.
Gen z dont want to get their asses up from the couch.
@@rapatacush3 Ok Boomer
@@cheshaii 30 years old actually.
@@rapatacush3 Exactly Boomer
I had to get a lawyer to leave an abusive company that treated me and others as indebted servants that couldn't take another job anywhere in the world. Thank Goodness for this legal change.
*HR managers smacking their keyboards in dispair*
It will probably be good for them actually because of more staff turnover.
@@HowMoneyWorks wait, but I thought that was bad for a company as it shows none of their employees are invested in the company long-term? Or is everyone doing what Amazon does now, where they want high turnover rates to keep new fresh employees coming into the business, while all the experienced staff leave due to the unrewarding work slowly eating away at their soul.
HR managers don’t care. The executives and owners are the only ones who care.
I work in IT and I periodically smack my keyboard too, though upside down to knock out the dust and skin flakes
@-Eternal-Damnation- its great for HR depts and placement firms. A lot of them have commissions and performance bonuses tied to how many roles they fill, and once the person lasts more than a year or two (which most of these still will) they've covered the recruiting optics.
the funny part is most top executives almost always come from other firms in the same business, so the non-competition agreements are definitely aimed mostly at shafting lower level staff and not to protect company information
Eh, not really. There are plenty of cases on the record regarding non-compete agreements for high-level employees, and even before this ruling, anti-competes couldn’t be perpetual, and courts could invalidate a non-compete agreement if they determined it to be unreasonable in terms of scope or time. This meant that a company looking to hire a new executive had some options for dealing with non-compete agreements (wait for the period to end, help them sue to invalidate an unreasonable agreement, put them in a position that wouldn’t be covered by a non-compete, ect). The big problem with non-competes being applied to low-level workers is that most companies aren’t going to be willing to invest that much time or effort into a particular person when they could probably just hire someone else to that position who isn’t bound by such an agreement.
I always make my employer sign a contract prohibiting them from hiring any other employees after I leave.
I love how all companies will bring up "training" lol. Unless you're in a skilled trade, a pilot etc - training in a white collar professional setting is typically just how to use whatever proprietary software is used in-house. Gaining new experiences through performing your job is NOT training lol, get out of here with that
This is especially true since companies have been cutting all the training they can over the last decade. Companies cant argue that you are well trained when they do everything they can to avoid training you.
amen
Most trades can be learned out of a book.
Alot of trades just don't read much. So it's hands on, person to person teaching.
To get any job that requires genuine training, you had to be trained in the act their hiring for already.
You have to have a pilots license to apply to be a professional pilot.
The training they gripe about is minimal at most in 90% of the work force.
If your company is looking for "entry level" employees with years of experience, there is a good chance your company isn't training anyone and doesn't plan to invest in your education and advancement.
French perspective here : companies still sometime write down non-compete clauses in work contracts, but they are mostly unlawfull. To be valid, a non-compete clause must be :
1- Limited in time
2- Limited in terms of geography
3- And maybe most importantly : Paid
I believe that was the case in the US as well (or at least in the majority of states), save for the payment requirement, until this rule was put into effect.
My wife was a dog trainer at PetSmart, and she had a non-compete. PetSmart doesn't even give a crap about their trainers. They're constantly trying to reduce their compensation and make their commission deals worse. Any kind of soft benefits to the company, like getting customers in the door weekly, is completely lost on the people in charge.
Edit: I want to add that if you ever come up with pet products, you shouldn't sell it through Petsmart. They'll sell it for a year or so, create their own crappy generic knock-off, and kick you to the curb.
Ridiculous!
I didn't know people still bought animals there, figured there was enough evidence of abuse that people would avoid their locations...
Ffs, how many chain pet stores with obedience schools are they competing with!? Jesus.
@@prw56 They don't sell dogs, though they do adoption days with local shelters. They were pretty big on force-free everything while she was there, but they did start selling prong and shock collars eventually. The leadership is in that typical race to the bottom now, trying to be the same as every other big pet store and squeezing every drop of revenue they can.
Dog trainer is a job?
"Without non compete agreements their competitors could just poach their staff after their investment and training."
These people literally think they own us. "Youre not allowed to leave! we trained you, we own you!"
If it does happen, you wouldn't be labeled as an employee anymore. You would just be labeled as executives which means nothings going to happen
Now we need the FTC to get rid of mandatory arbitration for employment agreements.
Unfortunately that would probably fall outside of their jurisdiction that's more a Department of Labor thing.
What is mandatory arbitration for employment agreements?
I would say removing mandatory arbitration as it currently exists should be removed as a whole due to it detrimental effect on both employees and consumers
Just get rid of mandatory arbitration in general lol. Preferably through Congress (if that ever happens)
I have never seen a reason for mandatory arbitration that wasn't "we're potentially doing shady things and don't want legal trouble"
@@rocketr8968It mandates that disputes with the employer must go to confidential arbitration instead of public court. Arbitration is meant for “merchants of roughly equal power”, so an imbalanced arbitration in practice means a lot of rulings that favor the business which as a “private” “binding agreement” can also be kept secret through a mandatory non-disclosure clause.
I can’t wait to see what workaround the business community comes up with to make a functional equivalent to a non-compete, instead of actually competing.
Start classifying every employee as an executive lol
@@FBNick08AND pay them I think it's 160k a year. There was multiple catches in what the FTC released to catch that specifically.
"You've all been re-classified as gig workers, not employees."
@@chikkin.salad.sandwichthat’s already what they’re doing.
Called a non-solicitation.
1:13 Companies: "I don't want a business relationship where the other party could unilaterally terminate the agreement, resulting in lost value"
Also Companies: "I lobbied to make every state Right to Work, so I can fire you without notice, for any reason, with no compensation"
Yahhhh. This ruling did not go far enough. The total lost worker income should have been calculated for the duration of right to work in that area & assessed as a fine on the business. Demanding a communist workforce & free market private profits does not work for me
Everyone is a capitalist except the companies themselves.
you don't actually know what Right to Work is, do you? In that case, it is simply saying that you don't have to finance a union as a condition of employment. Nothing else. If you want to join that union, fine. If you disagree with some message they push, you can keep your money for yourself.
@@jwil4286 Want to try again buddy? You have a limited view of cause an effect. The government provides no labor protections & if they did, they could be lobbied by the wealthy to eliminate them.
You have zero leverage with companies. Whatever you can do, someone else can do better at a lower rate.
So yes, I said what I said and it accurately reflects the situation of right to work. Right to work is just at will employment for the employer but not for the employee as we saw with these non-competes
So Id recommend you stop loosely quoting some libertarian nonsense from the 80s and get caught up with what these ideas mean in reality. Basically, you just said the equivalent of "that wasn't real communism"
@@jwil4286 Sure and if I halted medical supply shipment to a hospital, you are still completely free to seek medical care at that hospital
Sure, it will be 1700s medical care but it's clear cause and effect doesn't matter to you. We only need to look at an issue in complete isolation. You can still go to the hospital for medical care, so blocking those shipments does not matter
I didn't want to be "that guy" but luckily@@jwil4286 beat me to it. I probably wouldn't have been THAT much of a dick about it, it he right, you're conflating At-will with Right-to-work. Very common mistake, no shame in it, people generally know what you're referencing anyways
Employers love a “free market” as long as employees aren’t actually free. Then it’s “unfair”. What’s the matter? You can’t compete with the cut throat free market? Too bad clowns.
This is actually huge! I couldn’t believe it when a non-compete first crossed my eyes. I didn’t sign it and luckily they didn’t notice/care so I kept my job lol
Yeah, free market advocates conveniently forget that it's call "the labor *market*" for a reason. After 2008 labor became a buyers market because all the boomers had to delay retirement, leaving no room for new hires to rise up. But Covid flipped the script, getting all the boomers to finally realize their beloved employers and government and trusted media minds all gleefully cheated them out of their best golden years. They could have been fishing, popping Viagra, and spending time with the grandkids (just to clarify, those are 3 separate events), instead they were doing the work that should be lets you younger and more modern staff. So they bailed. Now there is a skills and experience vacuum, but companies are so spoiled by the last decades of being in power, they don't know how to act in a sellers market again. The reason they are looking for "entry level with a master degree and 10 years experience " is because that's what they us to be able to get. Over trained and educated millennials with no options to move up like previous generations.
If you want a free market but only if it's favorable to you, then you're not a capitalist, you're a fascist.
Dont forget , non-competes and non-disclosures must define a time-frame. If the employer leaves out the lifetime of the agreement, its null and void
Companies train their workers which justifies their non-compete agreements? A lot of the time they’re relying on public institutions (colleges and military), actively poaching from their competitors, and failing to find an “ideal” candidate petition for an H1B applicant whom they can threaten with revoking work status leading to deportation of possibly an entire family.
I will never not take an opprotunity to complain about H1B visas and how they are used for wage suppression. especially in my field of IT.
Saving this
The ends companies will go to screw over workers will never cease to amaze me.
@@_ch1pset Like I mentioned about H1B visas in IT its been a huge issue since the 90s when the H1B visa was created. in that span of time the average salary of IT staff in companies not only stagnated but started to go backwards and has continued to stagnate/regress since then.
in the mid 1990s it wasn't uncommon for the IT staff at an office to make 30-40k a year which would be the equivalent of about 62-80k per year today. the current average salary for IT workers outside of the largest cities in the country is about 45-50k per year so not only has the average salary been frozen in place but it has lost significant amounts of value due to inflation.
they let in about 115,000 people per year using H1B visas with a duration of stay of 3 years but extendable to 6 years without requiring them to acquire the H1B visa again, of that around 60% work in the tech industry.
someone would have to be deaf, blind and dumb to not understand that there is a severe market impact of even increasing the workforce in a specific industry by 30-60 thousand workers every year or just the fact that there are around 400,000 tech workers using H1B visas being paid on average 25% less than the market rate.
They're essentially free riding on the education paid for by governments and citizens.
I work in a small construction company, and I was smart enough to know this tactic and later found out I'm the only one without one. I laughed at them and said I'll never sign away my skills and knowledge.
Non-competes used to be accompanied by the person signing being paid a salary for the duration of the contract, whether the person signing was actually employed or not.
In that instance I'm sort of ok with it.
But there's got to be one hell of a reason for the contract to begin with.
Like if your company has created some ground breaking tech that no one else is even close to creating then maybe.
But that's a huge maybe.
@@Pwnopolis Yeah the money has to be what you'd otherwise make by working or no.
Many employers wouldn’t take you to court over this if you’re a low level employee. Considering their too cheap to pay you more I doubt they have the funds to sue
They know that it's not relevant. They use to to stop you leaving the company to get a better job.
Yeah, not even mid level or senior employees. This is only applicable to c-suite and high level R&D teams that might be under an NDA that is separate from the rest of the company for certain projects. Most employees are not worth a 200-250 an hour lawyer to spend 20-40+ hours on going after a senior manager who left and couldn't even manage his own calendar and train his team
Plot twist: it's not about suing individual minimum wage workers. It's about creating downward pressure on wages across the board.
It's not about the money, it's about Control.
Wrong. It is the threat to an ex-employee’s new employer that does it. Failing that, the ex-employer is out little in filing a suit the ex-employee will likely have no financial wherewithal to even respond to.
I’ve heard of fast food franchisees filing suits to punish ex-employees that went to work down the street.
How the hell can you have a free market with the government throwing you in jail or stealing from you for simply negotiating better pay?
Fast food workers are under noncompetes? WTF America.
Non compete does not protect against IP theft. It prevents competition. Non-disclosures protects against IP Theft. The employment agreement always includes the NDA.
Dumb companies prioritizing Noncompetes over NDAs and not suing for corporate espanage. Stock shares, NDAs, and seniority bonuses cancel out most of business turnover costs. Mitigating spiteful ex-employees while rewarding long-term employees. Everything else is a result of poor management practices
Lawyers will just sneak the non-compete into the NDA.
@@mangostickyrice9781 severability clause
This is also huge for employees in niche fields. I work in healthcare software, which is dominated by just a few companies, so my non-compete basically restricts me from working at any other medical software company. Some people at my company have such specialized skills that when they leave the company, they just bite the bullet and wait unemployed for a year before re-entering the workforce.
Not as big of a deal as you think. I lead recruitment in niche scientific and healthcare software fields and never had to worry about non-competes to make hires. Unless you were a VP or CTO or developed something proprietary or patented, you're replaceable within 60 days, 30-45 days if the TA Director is a stud. No one has time to pay a 300 dollar an hour lawyer to go after you. Non compete have been a non factor for years. And I hire 100+ specialized people a year.
@@Originalman144 Yeah. Thing is that employees don't wanna take that chance
@@Originalman144Employees still see the sword, even if it has been sheathed as of late.
As somebody who dodged a very toxic noncompete and ended up locked out of my field for six years because little was available otherwise due to that exact noncompete running everyone else in town out of business from lack of workers they could legally hire, this is a very good omen for my future.
Ever notice that when you apply for a job online, one of the questions is almost always whether you are subject to a non-compete? Admit you are and your resume goes in the trash. Lie and you get fired as soon as your old company complains.
Banned or not, you should never sign a non-compete.
I worked for a company that monetized websites. One of the engineers there made a game to publish on Facebook when Facebook apps was a big thing. He was fired for making the game when he went to the company and tried to put the company's products on the game to monetize it. You would think a company would find an engineer like that valuable but instead they said that all property he develops is theirs, even if he developed it in his non-working hours which he did, and thus they fired him. Seems like you'd be better to ask the guy to make more games and put more of your products on them.
This shit is why Boston turned from a Tech Hub into a nobody. Protectionism never works.
That’s nice to promote one of your writers. God bless you.
The best thing you can do for those who help you get you where you want to be is to do the same for them
@@HowMoneyWorks wise words man, I respect it. I should do the same in my life.
Maybe I shouldn't judge as a European, but non-competes sound like the least American thing ever. I'd expect this from our EU regulators, not from Yanks
Money over values is the American way.
If it’s anti-worker rights and all about stifling wages/any opportunities for employees, that’s 100% American. Remember, the USA was built on chattel slavery and its descendants still have not been compensated for the forced labor that built the country
Since its very inception America has just been a chain of wealthy people avoiding their responsibilities and trying to twist things in their favor. Everything we've ever been famous for was to line somebody's pocket
Lol, people think companies spend money to train staff. 10 years in a highly technical industry I have been given $0 in overhead for training. Charge that $#@t to the customer.
Can you imagine getting fired because your management screwed up and getting an embargo on entering the industry where you are proficient because it will hurt the ego of your previous employer
I can see why they finally banned it in most cases as even fast food was using it to keep their min wage employees for quitting and getting a job at another fast food store. It was being grossly over abused.
Though I am willing to bet that companies will still force new employees sign them and hold them over their heads hopping that the employees have no clue that they are not legally enforceable.
FTC needs to make it so if a company does make an employee sign one that the company will have to pay heavy damages to the employee to scare companies to not to try to pull a fast one on new employees.
If you are not in the financial market space right now, you are making a huge mistake. I understand that it could be due to ignorance but if you want to make your money work for you...prevent inflation
What are you talking about and how could this be explained?can someone please explain
I'm really confused, especially in market analysis, how are people using trading with them?
How does this crypto stuff really works and how do I make I make good profit from it? I'm willing to invest in it but I need guidance so I don't lose out
Jane Roy
My financial advisor , she’s a professional and has helped many become millionaires fr
I know someone who was held to a non-compete from the former Clear Channel (now known as iHeart). She quit to go across the street, and they told her - in effect - "we have more lawyers than you, and we can bankrupt you because you left us."
As some one who is under a noncompete and has been given very good offers from other companies, this is awesome
I was offered a contract that had a non-compete in my field of engineering without company approval for 8 years
NOPE
I had non compete clauses in minimum wage jobs. It’s insane.
companies love the free market until they don't
Exactly until it allows the worker the freedom to change jobs
Only baffling thing is that these were ever legal in America. They're literally called "non-competes". Like, obviously they are unethical and anti-capitalistic.
Had to sign a non-compete for my new job a couple months ago. Hearing this news is massive!
I heard the bell toll on this stupid policy the first time a friend got fired from Hot Topic for working at another retail store! 🤦🏻♀️ They had a good thing going these companies but they just had to get greedy and ruin it for themselves 😆
Great news for the people!
Got an employee with critical knowledge you don't want to go somewhere else? Now you need to compensate them to stay!
Now we need to actually start paying employees in accordance to inflation
I've heard that Orkin has been relentless about enforcing a non-compete for employees who spray for pests. Someone told me a story about being trapped there. They didn't like the job but had no place to go. If they wanted to start their own company, they couldn't because there was no place they could move to that Orkin didn't already operate. They also could not get a similar job for another company.
Great! Now the FTC needs to ban mandatory binding arbitration clauses and every single contract.
What the FTC needs to do, is to investigate politicians, who pass law brought forward by thinktanks, which they believe hurt the consumer and then file corruption charges.
The reason why the watchers are the watchers is that they know who they aren't supposed to watch.
"The FTC needs to file corruption charges against people doing their jobs,"-Brainlet
The only people who should have to sign non competes are C suite executives with access to sensitive company financials, R&D, etc. NOT a regular worker
Umm, companies did not "just recently start using non-competes to keep employees trapped in bad jobs". This happened to me ten years ago and permanently handicapped my career. How can I get paid for the damages that were done?
Are you saying that the government just did something in the interest of the people 🤣? Seriously though, What pushed the FTC to put this into effect? Is there any way to support similar movements?
That’s what I’m wondering to be honest
Look up the new ftc chair Lina Khan. She did the daily show recently too
Election year
Check out MorePerfectUnion for insights on what people are doing to take power back from corporate greed
Probably an Administration that doesn’t put big business first.
I was bullied into signing a non-compete. And spoiler alert, the new President of the company, whom forced people to sign them, went to work for the competitor.
I had a non-compete clause in my contract when I worked part-time at a mall clothing store. I was disappointed when I started working there because it meant I could no longer apply to work at a different clothing store right down the street from my apartment. But I needed money, and the other store wasn't hiring, so I was locked in until I changed career paths.
Things ended up working out for me, but had I needed the retail job longer things could have gotten difficult. I was being harassed by a repeat customer, and store management was constantly changing. If I had needed to quit for safety reasons I wouldn't have been able to use my experience to get a job at another clothing store.
In a shocking twist of events, the American government determines that non-compete agreements are not competitive.
Non-competes were as anti free market as it got. The system is only capitalist and free, when it serves the interests of a few, but that is quickly thrown out the door when free market is used against their interest.
Non-Compete and NDA only makes sense if the former employee gets Half-Pay for the duration if the agreement. If you leave/fired and their nolonger paying you then you should nolonger be obligated to do their bidding, but if you have exclusive knowledge then they should be paying you to keep it exclusive.
The possibility of your employees jumping ship to your competitors should be a deterrent to treating them like crap.
The fact that every political side hates Lina khan is telling. She probably actually is a good FTC chief, so clearly companies are investing a lot in discrediting her.
Long overdue! This is great news!!!
What about the practice of companies taking ownership of IP created by an employee outside of their job while employed? Many engineers never work on personal projects because anything they work on can be claimed by the company they work for, even if they work on it outside of their job. I think workers should reserve exclusive rights to their own work so long as it's done off of company time and not done with company resources (unless explicitly authorized to do so without risk). There are many cases where companies will try to claim ownership of some IP created by former employees under the pretext that they were employed at the time they were working on that IP. This should be illegal imho. I don't even care if the new IP competes with the former employer, if you worked on it on your own time, it belongs to you.
I’ve been waiting for you video on this since I heard about this decision. I knew you’d explain it well and you didn’t disappoint.
Thanks!
Pay more, and they won't leave.
the last thing an employer wants for the company is to have a majority of 10+ years employees because they know you get to work less for more pay
it's nice to have everyone doing their jobs knowledgeably having the whole place clocked but in practice, without enough turnover you end up having less than 10% of employees doing 80% of the work
I Never heard an employee saying they pay enough.
Good lord, can humans make ANY sort of job/labor arrangement that doesn't just devolve into "slavery with extra steps?"
Doctors and other healthcare workers are still stuck because of one big, gkaring problem with their rule. Non-profits are exempt. Most hospitals in the US are non-profits.
Why these disgusting rules founded in the first place??????
No rule gets put into place and is immediately abused. This was something that made sense for the companies it was being used on. Then, some baby boomers realized they could use this to prevent competition. And slowly started to do this to more and more people.
You don't boil the water and then throw the lobster in it. It'll just jump out. You put the lobster in when the temperature is good. Then, you slowly increase to a boil and the lobster will sit there until it dies.
Like he mentioned in the video, it was for executives who may know extremely critical info about a company that if a competitor had they could use to destroy the company without actually competing
But then of course if got abused and was put on to people who would never have this info anyway
Big props for the shout-out to your editor. Your doing great work and I love these videos. I can't wait to check out the new channel!
"the market regulates itself"
Good news, and keep up the good work!
Thanks!
Love this channel bro. Keep up the good work!
No competes were never allowed in California, by the way, since the 1950s. This is why it became such a big tech hub.
*The Crypto market is pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are a lot of wealth transfer in this downtime if you know where to look.*
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Heck yeah!
I've been waiting for you to do a video on this since it was announced!
Always informative, thank you.
Good riddance. I'm suprised that was legal to begin with.
I quit my job 2 years ago for the exact same job with double pay. When I quit I told my boss I was moving to Oklahoma because I didn't want to be a victim of the non compete clause.
This is a great development. Really encouraging. Great work with the video!
The fact that Lina khan is labeled as controversial is fucking disgusting and indicative of how rotten corporate America is right now. She’s literally just doing her job, the way it’s supposed to be done.
🍾🥂wow these CEO tears are so bubbly!
I absolutely love the "The Office" references and explanations. Keep them coming!
I really hope it goes through!
Never signed one. Also never signed the old "your ideas are our property" told them straight off you didn't pay for my education or my time for my education so my ideas are my own unless you are willing to pay for them.
Are US non competes different? Where I'm from if you agree to a non compete the company has to pay your salary (or part of it) for the time of the agreement. What happens if you breach a US non compete?
The former company sends threatening lawyer documents. The former company harasses your new company until they fire you. If you were to start a competing business, the former company would drag you thru court until you were bankrupt. The former company doubles down on any new non competes, increasing the time and distances.
This is not to say that everyone must feel in duty to vote Biden. The reality is that for most of us, the vote won't really have much of an effect anyway. But we just have to admit the reality that the instant Trump enters office, he will put some sort of clown to lead the FTC and it is going to devastate every progress made. Heck, he might even end up making Noncompetes mandatory or some stupid shit like that.
Thank you for that recommendation. I really want to learn how to make stories better
I had an issue where my last employer told me there’s a severance payout and eventually they let me go during a massive firing.
It could have been a mistake by the HR team or someone else but they paid me out prior to signing their severance agreement. The severance agreement was very long and would release me from ever being able to sue the company for anything. Not sure legally what can be done but holding my severance pay behind this agreement felt wrong that I told them, after talking to my lawyer, that my lawyer had instructed me not to sign your agreement. Even after saying no they kept emailing me to sign it
People don't understand that the prices of things are never going back down. This inflation is deeper than we think. Those buying groceries are well aware that the real inflation is much over 10%. The increments don't match our income, yet certain investors still earn over $10,400 in stocks and assets. Wish I could accomplish that... Thanks to Kristy Loreca The Lady you recommended to me...
That's awesome I know nothing about investment and I'm keen on getting started. What are the strategy?
I'll advise you to work with a financial advisor....Building a good investment portfolio is more complex so I would recommend you seek
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I'm surprised you also trade with Kristy Loreca, she's the best at what she he does. At first i was afraid too before i gave it a try and realized fear kills dream more than failure.
the inflation has taught people the important of multiples income,my main concern how can we generate more revenue? We cannot afford to see our people's savings crumble into dust.
I love how you can hear the "holy shit" in HMW's voice at 4:09
"Government Agency doing its job, Experts shocked"
Like regardless of politics, a government
agency doing its job is refreshing for once