https://twitter.com/Yahav_web3/status/1782857356168040733
"The Federal Trade Commission (FTC) has voted to ban non-compete agreements, which are contracts that restrict workers from taking jobs with competitors or starting their own competing businesses for a certain period after leaving their current employer.
This ban means that employers across the United States can no longer enforce non-compete clauses in employment contracts. The FTC's decision is significant because it affects a wide range of workers, from executives to those in lower-wage jobs.
The agency estimates that the ban could result in significant benefits for workers, including: Increased competition: With the removal of non-compete agreements, workers will have more freedom to change jobs, potentially leading to increased competition for talent among employers. Higher wages: By promoting competition for workers, the FTC expects that wages could rise by nearly $300 billion per year. More innovation: The ban is also expected to lead to increased innovation, as workers who previously couldn't start their own businesses in the same field due to non-compete clauses will now be free to do so.
The final rule was adopted after considering public comments following the FTC's initial proposal in January 2023. It is important to note that the ban does not apply to other types of restrictive covenants, such as non-disclosure agreements, which are still enforceable.
The FTC's decision has generated a lot of interest and discussion among the public and legal experts, with some anticipating legal challenges to the ban. However, for now, the ban represents a major shift in the landscape of employment contracts in the United States."
This is astounding. How do they have the right to make private contracts null and void.
Ha!! This is so current for me!
I just got to work as a home health nurse, and learned the case manager is coming today. Last month I told her I work for 2 companies. (I'm Trying to get a position with benefits I dont have here.) At 9pm that night I received a flurry of texts from the director and upper management, questioning me about it. So I spent a few weeks stressing about getting fired. And defending myself in a lawsuit. That I would win. Because I know the law and they dont. I just want a good job. Not a lawsuit.
I had a company pull this on me 8 years ago. I called a lawyer and he laughed. I learned these protections blew up during the dot com frenzy. There was so much money involved. The laws specify it applies to salaries over $100,000.00 yr. or sometimes 250,000.00 (each state is different). "No judge is going to charge a NURSE for working 2 jobs."
But there is so much money and competition in small nursing agencies they use the "Non-Compete" to threaten NURSES.
A 24 hour nursing patient is $1,000,000.00 billable hours a year. These companies are making big bucks and I'm hustling 2 jobs trying to get Health coverage.
In my case this is protective. And kind of Jupiter exciting. It is a big change for freedom and innovation.
Less work/$ for the courts.
Spoke too soon. Today I got an email from HR at Headquarters. Inquiring if I work for a their competitor. 😶🌫️
See, this is jaw-dropping to me. People sign non-compete contracts for all kinds of reasons. Since when can the government make a contract between two parties, null and void? It's illegal.
Maybe I'm missing something, but this seems nefarious to me. Just an all-powerful government, like that's a good idea.