Biden Moves To Restrict Noncompete Agreements, Saying They're Bad For Workers

[applegrove]

Biden Moves To Restrict Noncompete Agreements, Saying They're Bad For Workers

July 9, 202110:41 AM ET

ANDREA HSU at NPR

https://www.npr.org/2021/07/09/1014366577/biden-moves-to-restrict-non-compete-agreements-saying-theyre-bad-for-workers

President Biden wants the Federal Trade Commission to curtail the use of noncompete agreements as part of a larger push to promote competition in the U.S. economy.


"SNIP.....

President Biden is making good on a campaign promise to curtail noncompete agreements.

As part of a sweeping executive order, Biden is asking the Federal Trade Commission to ban or limit such agreements, which restrict where you can work after leaving a job.

The move is part of a larger push from the administration to promote competition and remove barriers that stymie economic growth. The White House argues that noncompetes drive down wages by making it harder for workers to switch to better-paying jobs.

Meanwhile, businesses who support the use of noncompete agreements say they are vital for protecting trade secrets and investments.

.....SNIP"

[unblock]

1. These clauses are often more intimidation than actual, enforceable provisions.

As a practical and legal matter, you can't prevent someone from quitting and you can't prevent them from working in the kind of job they're skilled in and trained for.

What is done one to do if their job becomes intolerable? Pick up an entirely different career for a year or whatever the term of the non-compete clause is? That's ridiculous and courts generally don't enforce such things.

But the threat of legal action can certainly intimidate people into avoiding going to work for a direct competitor.


Ianal.