Noncompetes Are Dead—and Tech Workers Are Free to Roam
WiredMore US workers will soon be free to leave their employers to work for rivals, thanks to a new federal rule that will block the long-standing practice of locking in workers with noncompete agreements. The agency estimated that by allowing people more freedom, the change would lead to the creation of 8,500 new businesses annually, an average annual pay increase of $524 for workers, lower health care costs, and as many as 29,000 more patents each year for the next decade. Under the FTC’s new rule, “tech workers will probably experience a rise in the outside opportunities that they face,” says Evan Starr, an associate professor of business at the University of Maryland who worked on the research. “They’ll have more freedom to work where they want; they will be more likely to be paid higher wages.” Opponents of noncompetes say they hurt workers by keeping them in lower-waged jobs and also stifle innovation, preventing people from starting their own businesses or putting innovative ideas into practice.
History of this topic
FTC ban on noncompete agreements comes under legal attack
Associated Press
Most noncompetes could be outlawed by a new Federal Trade Commission ruling. : Planet Money : NPR
NPR
FTC Approves Ban Of Noncompete Agreements In 3-2 Vote
Huff Post
New federal rule would bar ‘noncompete’ agreements for most employees
Associated Press
U.S. bans noncompete agreements for nearly all jobs
NPR
Business lobby attacks as New York nears a noncompete ban, rare in the US
The IndependentDiscover Related