Surprisingly, the Federal Trade Commission (FTC) has taken a bold step by prohibiting non-compete agreements that restrict many employees from switching to rival companies. In a decisive 3-2 vote along party lines, the Democratic majority within the agency made this groundbreaking decision.
Despite being labeled as “agreements,” individuals who have encountered these contracts know that prospective employees rarely have a say in the matter. It’s a take-it-or-leave-it situation where agreeing secures the job, while refusing leaves you unemployed. Shockingly, 30% to 40% of workers are compelled to sign non-competes even after being hired.
Unions, progressive think tanks, and countless employees despise these agreements for good reason. The discontent is widespread and justified.
One might assume that non-competes only impact high-level tech professionals and executives, but that’s a misconception. The reality is far from it.
While non-competes were initially used to retain skilled workers and executives with access to sensitive information, the landscape has evolved. Today, a significant number of companies mandate all employees to sign non-competes, including those in entry-level positions like janitorial or food service roles.
Challenging non-competes in court is theoretically possible but comes with a hefty price tag. As the Trembly law firm notes, non-compete litigation is costly and swift. Affording such legal battles is often out of reach for employees unless the new employer is willing to support them.
2024-04-29 11:51:02
Source from www.computerworld.com
