FTC intends to ban noncompete clauses that bind 30M US workers

by jordansmithnzon 1/7/2023, 12:27 PMwith 22 comments

by MrFoofon 1/7/2023, 1:46 PM

Apparently the case that really ticked off the FTC was a security company threatening to try to hit security guards for $100K if they left for a competitor.

https://www.cbsnews.com/news/noncompete-agreement-feds-sue-3...

Not highly compensated employees. People who were likely making less than $20/hour (possibly under $15/hour), being threatened to be smacked for $100,000 which would be absolutely life ruining for such workers.

by slavbojon 1/7/2023, 3:01 PM

Noncompetes should be illegal but it's a bit absurd to claim the FTC suddenly discovered they have the authority to unilaterally and retroactively modify contractual terms for tens of millions of contractors and workers - especially deciding whether it is "unfair competition" depends on whether the particular labor market segment votes reliably Democrat or not.

Under this reading of their authority they equally have the power to impose noncompetes on workers - it's all readable as "unfair competition", right?

Given the Supreme Court's recent jurisprudence on the major questions doctrine I'm skeptical this holds up in court.

by mshon 1/7/2023, 4:21 PM

A easier way to limit non competes to a minimum would be to require companies to pay a full salary to workers while the noncompete is in effect. No matter if they quit or are fired.

by thefurdrakeon 1/7/2023, 4:11 PM

Good. A company shouldn't have the right to tell me I can or cannot work elsewhere based on their own arbitrary definition of competition that I'm forced to agree to in order to possess a livelihood.

by subharmoniconon 1/7/2023, 2:29 PM

Hopefully non-solicitation agreements are next.