The FTC has banned noncompete agreements

33 points by nathan_phoenix 1 year ago | 8 comments
  • dev1ycan 1 year ago
    Good, I hope this trickles down to other countries that seem to just copy paste US laws like mine.

    I have a non compete that bans me from working in my field for 6 months, like how is this legal? absolutely crazy how every company basically copy pasted that clause into their contracts.

    • jdougan 1 year ago
      There is a reasonable legal argument that says it shouldn't be, unless you are compensated for the time (at least under anglo-american legal theory). As it is, courts will often dismiss "unreasonable" no-compete clauses, but you have to spend money on a lawsuit to get there. I'm not completely sure if the FTC is the right place for this ruling, but I'm not unhappy with it.

      It appears to be a late 19th century phenomenon. https://scnoncompetelawyer.com/short-history-of-non-competes...

      As some people have pointed out, the action will probably be moving to trade secret and NDAs protections.

    • NominalNews 1 year ago
      One of the best decisions made. Non-competes are harmful and the problem they claim to solve can be resolved in other ways.
    • moose44 1 year ago
      • maerF0x0 1 year ago
        I'm not always a democrat, but I do like the FTC under democratic presidency.
        • reureu 1 year ago
          Nice! Now ban NDAs when it pertains to claims of illegal activity including discrimination. I know there are some really fascinating stories floating around out there...
          • ChrisArchitect 1 year ago
            [dupe]
            • 1 year ago