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The state defines a non-compete agreements as "an agreement that restricts such a low-wage employee from performing work for another employer for a specified period of time; working in a specified geographic area; or working for another employer that is similar to the work done by the employee for the employer who is a party to the non-compete ...
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.
Non-solicitation agreements are restricted in certain jurisdictions, notably California, which prohibits such agreements for all circumstances other than the protection of company trade secrets in all but several exceptions, a decision upheld by the State Supreme Court in 2008. [5]
That's because most people don't even realize they've signed something saying they can't work for a competitor for a year or two after they left, or they thought (wrongly) that a non-competition ...
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 ...
The AFL-CIO, America's largest labor group, praised the new rule in a post on X Tuesday, saying noncompete agreements "trap workers from finding better jobs, drive down wages, and stifle competition."
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