Sunday, August 4, 2024

[NJFAC] Eliminating non-competes improves workplace conditions

Are Non-Competes Really Ending?

The Federal Trade Commission proposed a full ban in April. What's the status of that ban? Plus, more than a dozen states have acted after the effort of journalists, lawyers, regulators, and citizens.

"My employer comes far too close to owning me than should be possible in a 'free' country." - Anonymous commenter to the FTC

Over the past year, lawyers and human resource experts are starting to recommend an unusual strategy for corporate America. Treat your employees better.

A few months ago, for instance, James Moore & Co., an accounting and services corporation, suggested to clients that they start the "enhancing workplace conditions, offering competitive compensation packages and providing opportunities for career development and advancement." In late July, Steven Clark of Wealth Management magazine wrote that "firms may need to focus more on creating a positive work environment and attractive compensation packages to retain talent."

Why? Because non-compete agreements, which are standard contractual provisions for tens of millions of employees that lock them to their current employer, are getting harder and harder to impose and enforce. Firms are removing non-competes from employment contracts, big law lawyers are launching complex sites for their clients on how to track what contracts are outlawed, corporate CEOs are starting to brag that they do not force employees to sign non-competes, and creative labor-focused lawyers like Matt Bruenig are taking on cases and voiding these provisions in front of newly sympathetic judges.....

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June Zaccone
National Jobs for All Network
http://www.njfac.org

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