FTC Plan to Ban Noncompete Clauses Shifts Companies’ Focus

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The FTC’s plan to ban noncompete clauses in employment contracts could prompt employers to use alternative tools to retain employees and protect information

The Federal Trade Commission proposed a new ban on noncompete clauses, which the agency says hurts workers and competition. Companies argue they protect trade secrets. WSJ breaks down what a federal ban could mean for workers and businesses.

While a full or partial ban could expand the pool of potential hires, it also would weaken a tool thatto retain talent and protect trade secrets and other proprietary information, lawyers say. More companies likely would turn to a patchwork of alternative mechanisms to keep people from leaving and taking valuable information with them, including nondisclosure agreements and employment contracts that reward longevity, they say.

 

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Some of this impacts can be felt both for employees & employers & needs to be well articulated to enhance innovation, pay equity & better talent mobility.

Get back to work, peasants.

Anything but paying more or treating them well

The courts will overturn this ban

Two points to consider: first, the right to contract is allegedly an American principle of freedom. Second, the FTC has no standing to regulate employer/employee practices. Square these and then a debate can be had on the pros and cons of this rule.

It's another way of holding workers hostage, without a gun

Good, get rid of non-competes especially for those making less 💸. BTW it’s not used for employee retention lmao 🤣 that’s funny (and gaslighting)

Paying them decently?

Watch: Here's what a federal ban on noncompete clauses could mean for workers and companies, and what legal challenges it may face being enacted

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