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A 2023 petition to the FTC to ban non-compete agreements estimated that about 30 million workers (about 20% of all U.S. workers) were subject to a noncompete clause. [3] While higher-wage workers are comparatively more likely to be covered by non-compete clauses, non-competes covered 14 percent of workers without college degrees in 2018. [4]
Research shows that non-compete agreements make labor markets less competitive, reduce wages and reduce labor mobility. [3] [1] While non-compete agreements may incentivize company investment into their workers and research, they may also reduce innovation and productivity by employees who may be forced to leave a sector when they leave a firm.
In most jurisdictions, courts routinely "blue pencil" or reform covenants that are deemed not reasonable. The blue pencil doctrine gives courts the authority to strike unreasonable clauses from a non-compete agreement, leaving the rest to be enforced, or actually to modify the agreement to reflect the terms that the parties originally could have and probably should have agreed to. [3]
The U.S. Federal Trade Commission has proposed a rule that would ban companies from entering or attempting to enter a non-compete agreement with a worker. The rule banning non-compete clauses in...
In California, employee - employer non-compete restraints are void regardless of their reasonableness. Kindsvater 22 September 2006. User DS1953 (who I believe is not a California attorney) had added language, twice, conclusively stating that a non-compete agreement held enforceable in a state will automatically be held enforceable in California.
FILE - UNLV quarterback Matthew Sluka runs the ball against Kansas in the first half of an NCAA college football game Friday, Sept. 13, 2024, at Children's Mercy Park in Kansas City, Kan. (AP ...
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