I believe that non-competes are unfair when the employee is faced with right-to-work laws. With these in place, an employee takes a job for a week and can be fired with no ability to make a living somewhere else. This is even true if they were experienced and brought that skill set with them. This is the way I attacked these clauses: I already had the experience and the company is covered by intellectual property rights. For example, I can't share internal documents or lists. But the company can fire me, after taking my IP, and bar me from working in the industry. Screw that.
But this will be challenged.
Business groups led by the US Chamber of Commerce sued the Federal Trade Commission Wednesday seeking to block a rule finalized this week that would outlaw non-compete provisions that prohibit workers from switching jobs within an industry.
www.bloomberg.com
Yes, what the FTC decision is really about is this. If I learn how to sew shirts and go to work at a shirt factory, the factory can't make me sign a noncompete to prevent me from getting a better job at another shirt factory. If I learn how to bake bread, a bakery can't use a noncompete to prevent me from working at another bakery.
The only thing you can use to prevent me from working for a competitor would be an employment contract. And that's the way it should be. That is capitalism.
But I'm still not allowed to take trade secrets and use them to improve the design of shirts at the second factory or the bread at the second bakery. IP still applies.
Yes it's true that most of the noncompetes out there were unenforceable, but the thing is, most of the employees who signed them didn't know that.
How many people didn't know they could quit for better jobs, and didn't get decent raises because of that lack of knowledge? The number is incalculable but it's big. No wonder the Chamber of Commerce cares about this -- they represent a lot of shitty employers who want to get away with shitty pay and shitty benefits without having to worry about their employees quitting for better jobs. The Chamber of Commerce talks a big game about the free enterprise system but they don't actually believe a word of what they say. They don't want free enterprise when it comes to employees.