How Non-Compete Clauses Cost Americans $300 Billion A Year

  Рет қаралды 284,212

CNBC

CNBC

Күн бұрын

Пікірлер: 783
@andyschwartz8808
@andyschwartz8808 Жыл бұрын
If a company can dictate the terms of employment after an employee has left the company, they should also be responsible for continuing compensation to that employee as long as the contract is in effect
@cassidycross3406
@cassidycross3406 Жыл бұрын
This.
@Lomaherp
@Lomaherp Жыл бұрын
How so? Nobody is forcing people to sign these contracts?
@WhalesArePeopleToo
@WhalesArePeopleToo Жыл бұрын
@@Lomaherp They won't give you a job if you don't sign it. "Just find a different job" is not an option for people who have been searching for months and have only gotten that one offer.
@frankabler
@frankabler Жыл бұрын
@@Lomaherp Its implied that if you dont sign it when your hired, you will be immediately fired. Why do you think the employer gives it to you?
@cassidycross3406
@cassidycross3406 Жыл бұрын
@Dank Wow. You've never been forced into signing a contract to take a job you needed? That must be nice. Congratulations. 🎊
@bakmyster
@bakmyster Жыл бұрын
Non-compete for someone working at a salon is WILD.
@johntracy72
@johntracy72 Жыл бұрын
I guess they cut hair in the opposite direction from other salons or don't use Paul Mitchell products.
@johntracy72
@johntracy72 Жыл бұрын
Jimmy John's used to also and all they make are sandwiches.
@jac540
@jac540 Жыл бұрын
I actually found that one quite reasonable. It was just for a 10 mile radius and just for one year. I can see the point of the salon: if someone explicitely likes that hairdresser they might switch salon of the hairdresser starts working for the salon next door. The salon doesn't prevent the employee from ever finding a job again: 10 miles is probably less than the avarage american commute, and after a year the hairdresser can even work closer to home. 10 miles is just enough to prevent most customers from following the hairdresser to the new employer without putting big strain on the hairdresser. When I hear of janitorial services being subjected to a non-compete that sounds way more crazy to me. A company hiring janitorial services from another business most probably won't switch firms if a janitor switches employment.
@Nehmo
@Nehmo Жыл бұрын
@@johntracy72 Jimmy John's chairman, Jimmy John Liautaud is a big game hunter. He even hunts elephants and has wounded them without retrieving the animal. There is a boycott of Jimmy John's in which I participate.
@juliehwang8482
@juliehwang8482 Жыл бұрын
interesting
@jeffb5798
@jeffb5798 Жыл бұрын
I agree (with the FTC) - non-compete clauses are out of control and need to be banned. The main argument I've heard for having a non-compete clause is for for protecting a company's intellectual property, but companies already have laws against IP theft, or sharing confidential IP with competitors. Non-compete clause exist solely to force an employee to remain at a company and. should be banned.
@Steven-xf8mz
@Steven-xf8mz Жыл бұрын
Depends, imagine Apple shows up and reach out to your top talents by offering them 2x pay, and they take all the knowledge with them to finish up all the pending projects differently and patent those before you could. lol.
@johnrvf8099
@johnrvf8099 Жыл бұрын
​@@Steven-xf8mz that's just regular market forces at work though. If another company is willing to pay 2x salary to get talent from another company, then that just means the prev company is not paying the fair market value for the workers and if another company will pay more for those talents, then the workers should be free to take their talents elsewhere. Trying to restrain the freedom of workers to choose their employers with non compete clauses is against the free market and against the concepts of liberty and freedom.
@Steven-xf8mz
@Steven-xf8mz Жыл бұрын
@@johnrvf8099 well, how does some company compete with big arms who are full of cash. previous company could be paying above market value and apple/google can still walk in with 2x or 10x if they wanted to.
@johnrvf8099
@johnrvf8099 Жыл бұрын
@@Steven-xf8mz by offering better products at better prices. If they cannot offer that, then they have no business existing. That's the nature of free markets and of capitalism. If Apple or google walks in with an offer of 10x more salary, then that is the market value of that specific worker. It means that Apple or Google values the talent of that worker and what it would bring to their company. Premium talent comes in with premium prices.
@Steven-xf8mz
@Steven-xf8mz Жыл бұрын
@@johnrvf8099 free market? you're essentially saying monopoly is legal. by your standard then why isn't non-compete legal, it's also a part of market tool, thus free market on its own. it sounds like you have no idea what's going on and how free market works.... free market has its own restriction, if free market means anything allowed, then non-compete would hold ground easily as it's free to do so.
@apexone5502
@apexone5502 Жыл бұрын
No company should have that much say in a worker's life.
@OM-bs7of
@OM-bs7of Жыл бұрын
Then dont sign bro
@dannnyyang
@dannnyyang Жыл бұрын
@@OM-bs7of it sometimes impossible to get jobs without one in some fields
@apexone5502
@apexone5502 Жыл бұрын
​@@OM-bs7of easier said than done. There are times, such as the hairdresser's example, where someone's in a desperate situation and they sign practically under duress. If one has options, then yeah, they shouldn't sign. However, companies shouldn't have so much power that they can include unfair practices in their contracts to screw people over. They wanna do that with high level folks who are at or near the top of the company's chain of command? Fine. Those folks have less competition for jobs compared to lower level folks. That shouldn't be a thing implemented to regular folks who aren't getting paid upper 6 figures or more.
@gnualmafuerte
@gnualmafuerte Жыл бұрын
The problem is that you have to give if you want to take. Right now, there is an imbalance in favor of the worker. Companies are extremely exposed to lawsuits, it's super easy for employees to sue their former employer for any BS reason, and hard for companies to win. Anything is wrongful termination now. So, while workers can quit whenever they want, and companies are left exposed, you don't have the same thing for workers. Think about work contracts. If you sign a 5 year employment agreement, that is, you sign that you're going to work at that job for 5 years, the company isn't allowed to break that. The company actually can't fire you until the 5 years are up, but the employee can quit whenever he wants. There is no way for the company to enforce that. That's one-sided as hell. Non-compete agreements make a lot of sense in a lot of cases. It takes time and money to train an employee. You spend that time and money training them, and then only a few years later, when you still haven't recouped that investment, they go and get a job at a competing firm that will pay them more. And OF COURSE they will pay them more, not only they're coming fresh out of a position with their competitor, fully trained, and so the new employer can put them to work immediately, but they're also bringing in a lot of trade secrets from their competitor, it's a valuable resource. I don't necessarily like the concept of a non-compete agreement, but we need some balance. Ideally, the market should be freer, employers should be allowed to hire and fire anyone without reason at any time, and employees should also be free to leave whenever they want. There should then be enforceable contracts where you agree to stay at least a certain amount of time with a company, that both parties sign only if they agree with it, and for certain other things in exchange. If you're going to remove non-compete agreements, then you have to remove the laws that forbid companies for charging you for training, and allow more flexibility for the employer to fire people.
@gnualmafuerte
@gnualmafuerte Жыл бұрын
@@dannnyyang It doesn't work, I speak from experience. I own a small firm, that requires quite specialized and skilled professionals. Sometimes, we've gone through the trouble of qualified engineers elsewhere, and paying to relocate them if necessary. That costs money. We offer a lot of incentives to keep the people in the company, including raising salaries almost constantly. I paid for the cost of finding, relocating, and qualifying those workers. I *already* paid extra, a lot for them. Add their salaries to that, and divide the initial investment across the time they stay with the company, and that is my actual cost. They will ALWAYS be cheaper to a competitor, since they won't have to spend the money finding and training them, so they can ALWAYS offer more money. Sometimes, startups will offer preposterous amounts, that I could just NEVER match. If there are no non-compete agreements, then you're encouraging companies not to find younger talent and train them, but rather go and hunt in the company across the street. Just lure workers away from your competitors. You don't have experience and training? Sorry, I won't hire you, because I know you will just leave for another company afterwards and I'll lose, so I'll just go and offer more money to the guy that works at a competitor. Good luck finding a job as a young guy fresh out of college.
@user-wl2xl5hm7k
@user-wl2xl5hm7k Жыл бұрын
All Non-Compete Clauses should be illegal and non-enforceable. They are entirely anti-free market and it is authoritarian to enforce them to any degree.
@WarRior-rn4kb
@WarRior-rn4kb Жыл бұрын
if you dont like non-compete clauses, you're a communist
@syncaccount8550
@syncaccount8550 Жыл бұрын
They are in most European countries
@user-wl2xl5hm7k
@user-wl2xl5hm7k Жыл бұрын
@@syncaccount8550 Do you know which countries still have them?
@idle4407
@idle4407 Жыл бұрын
Non-compete is a service provided by employees to their employer. Employers have to pay for this non compete service. To stop employers from stifling competition and randomly binding ex-employees into non-compete clause, non-compete service should be at least 2-3 times employees pay by law. That will protect both employees and employer interest without stifling competition as much.
@user-wl2xl5hm7k
@user-wl2xl5hm7k Жыл бұрын
@@idle4407 No. It’s too authoritarian on individual persons. They must be unenforceable. This is ethics.
@collectorguy3919
@collectorguy3919 Жыл бұрын
If FTC protecting employees from non-compete clauses is now "fundamentally changing the rules of employment" with a "sweeping change", then American businesses have become far too dependent on abusive employment terms. Disgusting, US Chamber of Commerce.
@WetflowerVariant
@WetflowerVariant Жыл бұрын
Abusive employment terms? How about abusing employees without healthcare or paid leave!
@Jilla0559
@Jilla0559 3 ай бұрын
Thank Joe Biden and Kamala Harris !💙💙💙
@Jilla0559
@Jilla0559 3 ай бұрын
Look at that Fat cat steeling for the Corporation !!
@UnrealGamesProfessor
@UnrealGamesProfessor Жыл бұрын
I once signed a non-compete as I knew its not enforceable. 5 years, worldwide in any form of games development - something I've been doing since 2000. Judge in Colorado laughed and told the company to maintain my full salary for 5 years if they want to enforce it. They dropped it.
@isaksidenius7059
@isaksidenius7059 Жыл бұрын
How did you know it was not enforcable?
@onseroll
@onseroll 6 ай бұрын
@@isaksidenius7059 At the end of the day the company has to take you to court to enforce the agreement. If the agreement is unreasonable then the court will favor the employee. In this case the judge basically said if he can't work anywhere outside of the company in the industry he developed his skill and knowledge for then the company would have to pay for the whole five years even after being laid off or fired. Not exactly what happened here but pretty much what might have happen.
@sor3999
@sor3999 3 ай бұрын
@@onseroll At best such agreements are a scare tactic.
@MrNiceGuy500
@MrNiceGuy500 Жыл бұрын
Non compete clauses separate families while the CEO sits high and dry. Modern day slavery
@nosirnthsethangs
@nosirnthsethangs Жыл бұрын
Not quite. You're not looking at from the standpoint of the person who developed the clients, the intellectual property, forged the initial relationships, etc. You're welcome to start your own company if you want too and call your own shots, but let's face it - most likely, you don't have the talent or the drive.
@efrainvazquez6974
@efrainvazquez6974 Жыл бұрын
@@nosirnthsethangs lmfaoooooo chiiiilllllll. 😂😂😂.
@MrNiceGuy500
@MrNiceGuy500 Жыл бұрын
@@nosirnthsethangs Not quite. Your talking to the person who went to school, paid for their degree, became triple board certified, worked for multiple different companies and then encountered a non- compete. Was already self trained and received no training from company with the non compete. When the board committees set the standards for ALL of the businesses in our field there are no secrets. The standards are set outside of any single business.
@patricklooney3598
@patricklooney3598 Жыл бұрын
@@nosirnthsethangs obvious bot/burner account
@MrNiceGuy500
@MrNiceGuy500 Жыл бұрын
@@nosirnthsethangs that’s the problem non competes are being used against everyday people. They should be for C-suite and above. It has raised the cost of healthcare by 183 billion in the USA
@samtherat6
@samtherat6 Жыл бұрын
If a company doesn’t want someone working anywhere else for a period of time, then they need to provide proper compensation for that time. Otherwise people are effectively locked in indentured servitude. 99% of the time, it’s that simple.
@Lomaherp
@Lomaherp Жыл бұрын
Nobody is forcing people to sign non competes. Its the persons fault who signs it
@samtherat6
@samtherat6 Жыл бұрын
@@Lomaherp Employers blackmail their employees with it, saying they’ll terminate employment unless they sign it. Labor laws exist for a reason, or else we’d have kids working 80 hour weeks.
@thetribalthief6330
@thetribalthief6330 Жыл бұрын
@@Lomaherp hey smooth brains, did you not watch the video? they literally talked about the hairdresser having to sign a non-compete clause after she was already hired. they would have terminated/fired her if she didn't sign it.
@XOPOIIIO
@XOPOIIIO Жыл бұрын
@@samtherat6 But what about they gave them the employment in the first place? You're not complaining about that. Kids are too young to sign contracts.
@TheBooban
@TheBooban Жыл бұрын
@@XOPOIIIO what’s your point? kids are too young to sign contracts because a law says so.
@einsteinboricua
@einsteinboricua Жыл бұрын
Love how the US CoC VP says that the FTC can’t ban non-compete agreements because it doesn’t have authority. At no point does he even attempt to explain the benefits (if any) they provide and the consequences if they’re nullified. No, it’s simply a “we know they’re bad but you can’t stop us”.
@johnm145
@johnm145 Жыл бұрын
Right. The US CoC is not even a government entity and has the interests of the corporations with them. Of course they want non competes
@CreepahKillahRSA
@CreepahKillahRSA Жыл бұрын
It seems to me that non-compete agreements are bad. But I don’t want unelected bureaucrats declaring they have sweeping authority they were never granted. It’s a valid concern.
@einsteinboricua
@einsteinboricua Жыл бұрын
@@CreepahKillahRSA I understand that. It's definitely a valid concern. But the point I'm bringing up is that if you have a problem with an unelected bureaucrat voiding NCAs, they need to defend it with more than "you don't have the authority". That argument will likely fall flat because if the FTC is empowered (by law) to make such decisions, then it doesn't matter how much you yell "don't do it". Rather, they should defend the merits of NCAs so that the FTC finds it harder to overturn them.
@Wizardboz
@Wizardboz Жыл бұрын
Yeah that guy and the guy with the speech disorder need to be reemed
@liam3284
@liam3284 Жыл бұрын
It's their job. It is the FTC's job to regulate anti-competitive behaiviour. Imagine you walk into Wall Mart, and must sign as a condition of sale an agreement that you will not shop at any other department store, or you bought a Mac, and needed to sign an agreement prohibiting you from buying Microsoft Windows.
@CindyMcGuirk
@CindyMcGuirk Жыл бұрын
An employer doesn't own the employee. Placing these restrictions on a low level worker is just gross.
@93BrownCow
@93BrownCow Жыл бұрын
“I thought this was America” -Randy Marsh. Capitalism is for the market to determine which products and services people want. Noncompete clause basically remove your ability to play in the market as a service or product provider. Protect your business with patents and trademarks, noncompete clause should be removed as business should not own people. Or pull a reverse card and have businesses sign that they will not find another employee to fill the role you left if you have to sign a noncompete clause… I was never here lol.
@angelm3670
@angelm3670 Жыл бұрын
Patents and trademarks are antithetical to capitalism
@GraphicJ
@GraphicJ Жыл бұрын
If a company wants to control my life and career after the company lays me off for 1 or 2 years, sure do that, but then they need to keep paying me since they want to own me like their slave. Either that or let FTC ban this practice.
@mathewmclean9128
@mathewmclean9128 Жыл бұрын
Showing up at the executives house with mr. Arkansas 15 and 35 extra doses of acupuncture is a great way to show these corporate communists who their real bosses are.
@jamesbizs
@jamesbizs Жыл бұрын
LOL like a slave. Yeah. I’m sure slaves AGREE to sign contracts prior to getting their well Paid job. And no one is stopping you from working. Go get another job. Just not the exact same type of job
@runnexplorer
@runnexplorer Жыл бұрын
To give perspective on solutions: in some EU countries, Non Compete Clause are considered illegal or void if are not paid. The company you leave has to literally pay you not to work in its competitors.
@denniszenanywhere
@denniszenanywhere Жыл бұрын
Which eu country?
@runnexplorer
@runnexplorer Жыл бұрын
@@denniszenanywhere at least France. Cannot speak for others as I don't know the law in those, but won't be surprise to have something similar.
@denniszenanywhere
@denniszenanywhere Жыл бұрын
@@runnexplorer Thanks
@koenven7012
@koenven7012 Жыл бұрын
@@runnexplorer In Belgium too. Either they pay out (I think here it's half of the term, so if you have a 1-year non compete, they have to pay your 6 months). But depending on circumstances you can also negotiate with your employer to nullify the non-compete clause (which I did the last time I switched employers) and I also think (but I'm not sure) that they don't count if you are fired by your employer, only if you leave yourself.
@KiloBee777
@KiloBee777 Жыл бұрын
Business policy in the EU is not aspirational
@g0ast
@g0ast Жыл бұрын
I sold residential solar for 4 years when I was in college, the first company I left because they didn't pay as much as the company I left them for but the first company had a non-compete clause. The second company said no worries because they gave me the comission but had all my sales appear as a sale from the company owner rather than my name and nobody knew the wiser because the second company had me as "lead generation" with someone else closing the deal even though it was me. On paper though I didn't violate the clause.
@kyleharr10
@kyleharr10 Жыл бұрын
I do solar now. We are 1099s. I don't believe they can enforce this against 1099s for some reason but not sure of that's true.
@g0ast
@g0ast Жыл бұрын
@ahtan2000 there's lots of shady companies in solar, the second one I went to is legit, just not corporate so the owner DGAF about NCAs. I made great deals for homeowners and actually saved them money. A lot of companies gouge out homeowners because the profit margins are so big. I encouraged people to shop around and they did and they still came back. It really helps when the company doesn't have significant overhead to worry about but still sell the same systems the corporate company does. That's the crazy part, I sold the same systems at the 2nd company made by the company I left haha and made more income and saved homeowners more money. What is shady is companies not backing up their claims with documents, or using a management company that can go under any day. Stability is key in leased systems.
@gianinnealvarez8506
@gianinnealvarez8506 Жыл бұрын
I’m a nurse practitioner in Florida who practices aesthetic medicine and offices make us sign a non-compete limiting us to a 15mile radius for up to 2-3 years. We also can’t work for anyone else while we actively work for another practice. It’s absolutely crazy. Every medical aesthetic practice basically works the same. There really isn’t a trade secret in medical aesthetics.
@Shredxcam22
@Shredxcam22 Жыл бұрын
If a company asked me to sign a noncompete, I would ask them to sign a contract to pay me if fired, layed off or otherwise not able to work during the period of non compete.
@ledwysdelgado7304
@ledwysdelgado7304 Жыл бұрын
Love it.
@kr46428
@kr46428 Жыл бұрын
Hah, tempting, but sometimes you sign what you have to in order to have a job / put food on the table. That's why these types of agreements should just be banned, because sometimes you don't have much of a choice.
@Shredxcam22
@Shredxcam22 Жыл бұрын
@@GameHackingGuru that's fine. Thankfully in my position, I have the upper hand. Having a specialized skill gives you a good position in that discussion
@ledwysdelgado7304
@ledwysdelgado7304 Жыл бұрын
@GHG don't be afraid of saying no.
@paulsz6194
@paulsz6194 Жыл бұрын
Usually CEO’s get a generous severance package when they leave or are pushed out in order not to work in the industry they are in at the moment, so it’s like they are being paid to respect the non-compete terms & conditions.
@Mr.DMZ.
@Mr.DMZ. Жыл бұрын
My wife violated her non-compete clause from her previous employer. They tried see who she was going to be working with before leaving but she kept silent as her new employer was a big competitor.
@randy897
@randy897 11 ай бұрын
In my industry, they can just go on a website and it immediately shows all details of your new employer (if in same industry).
@johnsamuel1999
@johnsamuel1999 Жыл бұрын
Non complete clause should only be allowed for roles that deal with trade secrets or very valuable IPs
@apexone5502
@apexone5502 Жыл бұрын
Agreed. A working stiff who is really replaceable should not be under a non compete clause. They're not in a position to damage the company since they've no access to anything that can give any other company a leg up.
@BKDeHa
@BKDeHa Жыл бұрын
In my country I only see those clauses in C level jobs. I'm very surprised to see that US companies are using this so wide-spread around every level of the company
@muccisebastian9300
@muccisebastian9300 Жыл бұрын
Thats already protected by IP rights and patents no need for a non compete clause. Eliminating thsi clauses might not have the impact they think for the workers though, it might actually lead to lower wages in the end.
@stevenlynch3456
@stevenlynch3456 Жыл бұрын
The thing is, many of these same companies that have non-competes likely already have different legal agreements that cover Intellectual Property and its usage outside of the company.
@TechedOff
@TechedOff Жыл бұрын
Or just sign a NDA?
@stevenjm12
@stevenjm12 Жыл бұрын
Ban on non compete would be great
@jefflewis4
@jefflewis4 Жыл бұрын
They really do need to do something. The last time I changed jobs, I got hit with a non-compete, that covered my industry in the entire NYC area. I couldn't work for 6 months, fortunately it was only 6 months and I was able to survive it. But still I lost half a years income because my previous company refused to waive its non-compete clause. But what about the people who can't afford to not work for 6 months ??
@timberwolfe1645
@timberwolfe1645 Жыл бұрын
You could have worked another kind of job for 6 months. It doesn't mean you just lose money. Time to try something new, really
@jefflewis4
@jefflewis4 Жыл бұрын
@@timberwolfe1645 Sure you can 'try' getting a job in a different field, but you have 10 years experience in your chosen field and have 0 years experience in other fields. Its going to be a heck of a lot more difficult and probably take you more than 6 months to even land a good job in another field with 0 experience. So it would be pointless to put in the effort to get a new job in a different field compared to waiting out the non-compete for the 6 months and start the new job you were already offered.
@jac540
@jac540 Жыл бұрын
What job was it? Was there a risk you could take either trade secrets, or customers to your next employer?
@jefflewis4
@jefflewis4 Жыл бұрын
@@jac540 It was an IT job. No trade secrets involved. My old company lost the contract, to the new company. The new company decided it would not be easy to fill the role I had so they made me an offer. It was an easy decision I live near the client, I didn't have to move or anything and just continued doing the same job at the same place for a different company.
@arbitraryproductions1746
@arbitraryproductions1746 Жыл бұрын
@@jefflewis4 wow thats insane they lost the client you did work for and still forced you under their non compete thats messed up
@benj1236
@benj1236 6 ай бұрын
*Companies : "We can fire you for any reason and hire your next door neighbor. But you CAN'T work with one of our competitors unless we allow it."*
@connecticutaggie
@connecticutaggie Жыл бұрын
In some cases, non-competes make sense to protect a competitor from stealing private information or skills by hiring away their employees BUT it is also used frequently as a bullying technique to keep poorly paid workers from seeking better jobs elsewhere. I am a well paid engineer and signed a non-compete and I understand that but my younger son is a medical scribe in a hospital emergency room, gets paid minimum wage, and also had to sign a non-compete - that is bullying. Fortunately Oregon passed a law in 2021 that (among other things) that for a non-compete to be valid, the employee must make >$100K and the employer must have something to protect. That seems reasonable.
@Carahan
@Carahan Жыл бұрын
Oregon, Washington, Illinois, Virginia, Colorado, and Maine all have minimum pay requirements for non-competes. 3 states nearly ban them completely in California, Oklahoma, and North Dakota.
@connecticutaggie
@connecticutaggie Жыл бұрын
@@Carahan I think completely banning non-competes is the wrong approach. There is a valid reason for them in some cases and in those cases, companies are going to find a way to protect themselves.
@atra7812
@atra7812 Жыл бұрын
If you don't want your employees to go away then y treat them well and pay them better. You don't own workers. The skills they have are their even if you trained them. Non competes are just indentured servitude rebranded
@connecticutaggie
@connecticutaggie Жыл бұрын
@@atra7812 This is not always about how employees are treated but also about inside information they know like.sales and client information, new products, financials, trade secrets, etc. Protecting this information is a valid concern and non-competes is a reasonable way to protect that. I agree that in some cases (like what happened to my son) that non-competes are abusive (but calling it slavery is a bit overblown). The best approach is to find a way to protect employees AND employers.
@atra7812
@atra7812 Жыл бұрын
@@connecticutaggie most of those things are already protected by IP laws, if they want silence on other things not explicitly protected by law the need to pay for all the missing income due missing opportunities.
@FairBeautyEssentials
@FairBeautyEssentials Жыл бұрын
Looking forward to seeing this BANNED
@ZAGIDI
@ZAGIDI Жыл бұрын
So there is no freedom of movement in terms of labor or worker? But Employers are able to just fire anyone they want? What a sham of a system.
@smallfgb
@smallfgb Жыл бұрын
The FTC is tasked with ensuring competition. How have they missed something labeled as anti-competitive so long is an amazing failure of governances
@atra7812
@atra7812 Жыл бұрын
You live under the dictatorship of capital. They couldn't care less, they have doble standars for everything.
@sor3999
@sor3999 3 ай бұрын
Regulatory capture often by Republican appointees.
@smallfgb
@smallfgb 3 ай бұрын
I’m no republican, but has been allowed by both parties for decades, often when each party has owned the house, senate, and presidency. I think the days of Dems looking out for workers is replaced by them getting money from business. That said, R has historically been business over worker too. Maybe with FTC under Biden pushing this, the Dems are working to get back to their base? Many other policies are no pro-worker at present due to donations. Time will tell.
@MoReal2
@MoReal2 Жыл бұрын
Only in America can a Hair Salon require a non-compete agreement..
@zeitgeistx5239
@zeitgeistx5239 7 ай бұрын
Lmao, you mean the country that supports genocide in Palestine and kidnapped and tortured Europeans after 9/11?
@ninjagirl226
@ninjagirl226 Жыл бұрын
What I hated was when I was laid off and I had to ask my old employer who laid me off if my new job was ok. And my fun was that my old employer didn’t understand what my new job was despite being completely different in every way. My old boss had to step in and explain fight for me to be able to work again. It was awful.
@julienwater
@julienwater Жыл бұрын
It was a very bad decision to remove the Glass-Steagall Act in the late 1990s, which led to the spectacular failure of huge banks during the financial crisis of 2007-2008. To prevent another disaster, Dodd-Frank and this statute both need to be reestablished right away. What happened with SVB is only the beginning of what will happen if nothing is done to address the current situation.
@richmorten
@richmorten Жыл бұрын
In my opinion, SVB was attempting to restructure their bond portfolio, which involved selling their low-yielding bonds despite the potential loss, and compensating for it by buying higher-interest-rate bonds on the open market.
@lindsayross-pt3jv
@lindsayross-pt3jv Жыл бұрын
@@richmorten Despite the economy's resilience thus far, the SVB scenario cautions that the effects of Federal Reserve rate hikes persist. During such periods, investors must remain alert to anticipate what comes next. It is not necessary to act on every prediction, so I recommend seeking the guidance of a financial advisor, which has been my go-to advice for some time now.
@laurabruce-op1xx
@laurabruce-op1xx Жыл бұрын
well said a i told my friends this yesterday at the office
@lindsayross-pt3jv
@lindsayross-pt3jv Жыл бұрын
@@KevinEvans-mq4ob Having a counselor is essential for portfolio diversification. My advisor is vivian marisa coelho, who is easily searchable and has extensive knowledge of the financial markets.
@chumpthetraitor7331
@chumpthetraitor7331 Жыл бұрын
Do you scammers really think that still works?
@TopShot501st
@TopShot501st Жыл бұрын
All at will employment should be prohibited from signing non-competes. If you can fire someone without cause at anytime you shouldnt be able to prevent them from leaving at anytime to work in the same field.
@RRW359
@RRW359 Жыл бұрын
People who say that they just shouldn't have signed forget about the 13'th ammendment. It doesn't just ban slavery, it says that there are circumstances where a contract just can't be justified even if the person knows what they are getting into. A company shouldn't be able to force you to do or not do anything when you aren't on the clock.
@sor3999
@sor3999 3 ай бұрын
There is definitely precedent for that. Like TOS or EULA, they can't just put in "we have right to all your bank account details" and people often just click agree on those without reading the 1000s of pages of legal jargon.
@gabimay_love
@gabimay_love Жыл бұрын
You guys are doing a great job of getting information out.
@djp1234
@djp1234 Жыл бұрын
Non-compete clauses are anti free market. They should be illegal.
@RidingTheThinBlueLine
@RidingTheThinBlueLine 7 ай бұрын
Pay your employees and treat them right. Non Competes would not be needed.
@josephtemple1667
@josephtemple1667 Жыл бұрын
I once worked for a real estate agent as an "independent contractor" (translation: they didn't want to pay health benefits or 401k contributions but still considered me to be a full-time employee with all the responsibilities). A month later, when they asked me to sign a non-compete agreement, I told them to shove it.
@ChrisTennis
@ChrisTennis Жыл бұрын
This issue is rampant in dental field too, a dentist is barred from working within 30 miles for 5 years . . . Essentially forcing you to relocate to a different city
@chrishan9138
@chrishan9138 Жыл бұрын
In a more civilized world it takes the form of gardening leave. A period in which firms PAY departing staff their full wages whilst the employee can not take other employment or compete. The idea that anyone should agree to a one-sided contract where they can't seek other employment yet don't get paid is nuts.
@atra7812
@atra7812 Жыл бұрын
That's just how those stormtroopers with hive mentality are. They will defend their capitalis masters even if it means a detriment to themselves.
@aboucard93
@aboucard93 Жыл бұрын
its corporate blackmail and companies use it to retaliate against their employees
@rachelpatterson2327
@rachelpatterson2327 Жыл бұрын
One of the worst non-competes are with Robert half, Heard horror stories from other recruiters and business development reps that work there,
@longbeach225
@longbeach225 Жыл бұрын
Its true. Even for the contracted consultants too. I have heard stories companies wanted to hire full time but drop the idea because Robert Half fee was too high.
@Wizardboz
@Wizardboz Жыл бұрын
These documents are BS and aren’t financial worth it to the company to follow through with
@Wizardboz
@Wizardboz Жыл бұрын
And for companies who do its a really bad look
@livedreamsg
@livedreamsg Жыл бұрын
This clause doesn't make any sense for the vast majority of workers. Specially the ones for jobs such as landscaping. Competing!? really!?!? this only makes sense when you make a company and start bribing a bunch of customers/employees from your previous company.
@Demopans5990
@Demopans5990 Жыл бұрын
And even if so, in that specific case, it is anti capitalist as you're preventing competition
@sor3999
@sor3999 3 ай бұрын
@@Demopans5990 Takes someone special to do the mental gymnastics to argue that more competition is less competition. You really think everyone is that stupid? Give us more credit.
@FGH9G
@FGH9G 7 ай бұрын
Update April 23, 2024: Non-Compete Clauses are now HISTORY thanks to the FTC! Thank you Lina Khan!!!
@sircharlesmormont9300
@sircharlesmormont9300 Жыл бұрын
These rules seem inherently unfair to workers, especially in "at will" states. Employers hold far, far too much power over workers' lives already. Anything that we can do to give workers more rights and a better bargaining position is, in my opinion, warranted.
@irtwiaos
@irtwiaos Жыл бұрын
Non compete and non disclosures should be banned in the legal system.
@adamalexander1496
@adamalexander1496 Жыл бұрын
The FTC should regress the legality of non-compete clauses back to their original intention - to protect trade secrets at the executive level. Nothing else.
@waymanharris1284
@waymanharris1284 9 ай бұрын
It's single-handedly the reason I've turned down several FANG offers. Such is life. Meh
@frankabler
@frankabler Жыл бұрын
These non-compete agreements are illegal in 99.9% of the cases anyway. Employers know that but have employees sign them any and then threaten to sue if there is non compliance. When challenged legally, employers always back off and drop their lawsuits.
@RichardAmesMusic
@RichardAmesMusic Жыл бұрын
Yeah, in my experience they're a non-issue. Which begs the question... is this really journalism?
@blueprint7
@blueprint7 Жыл бұрын
@@RichardAmesMusic yes
@anova5965
@anova5965 Жыл бұрын
They might be illegal, but they still cost the same money to defend against as legal ones.
@simoncaron6424
@simoncaron6424 Жыл бұрын
As someone who’s experienced a civil Supreme Court lawsuit I could tell you a dozen ways to drag out a lawsuit to make it as expensive as possible and they’ll still get nothing if they win.
@sor3999
@sor3999 3 ай бұрын
@@RichardAmesMusic OK shill.
@brettdomenick
@brettdomenick Жыл бұрын
I remember when I was 16 and working for $7.25/h at a Bounce-U they had me sign a non compete in my contract. I've always thought this was wild, not that I was going to leave for another kids birthday party place.
@JustMe99999
@JustMe99999 Жыл бұрын
Confidentiality agreements, yes. Non-compete and non-solicit? Just immoral.
@Pallidus_Rider
@Pallidus_Rider Жыл бұрын
To put into perspective, imagine non-compete in the NFL, NBA, or MLB. That would be un-American. 🇺🇲 🇺🇲 🇺🇲 🇺🇲 🇺🇲
@saltyroe3179
@saltyroe3179 Жыл бұрын
The law should require that the former employer must pay the employee for the non-compete to be effective. If a non-compete is enforced without paying the former employee it is the equivalent of slavery which we banned during our Civil War.
@vincesmith2499
@vincesmith2499 Жыл бұрын
Non compete clauses are part of a free market. Don't sign one if you don't like it.
@paisa246
@paisa246 Жыл бұрын
I understand and agree that they should be used to prevent from stealing company secrets or clientele to begin an identical company, but def not right for regular workers
@GrannyTheftAuto
@GrannyTheftAuto Жыл бұрын
They are in many contracts here in Norway, bur are nullified by law where it dictate that you can't agree to not continue to work, no matter what way it is. So you can happily sign it here, with no consequences.
@FacePlant1324
@FacePlant1324 Жыл бұрын
Non-Compete Clauses should be illegal. It is crazy that a company has the power to tell you that you can't work for another company as whatever job you did at that company. How else would i make money than if I can use the skills I have learn and trained for to make money. That is the whole point of the economy is to use the skill you have to work in the field that is best suited for those skills to make a living. If i was a programmer for a few years at one company they expect me to go flip burgers. That is ridiculous. That is anti-free market capitalist.
@sinebar
@sinebar Жыл бұрын
I had to sign a cooperation agreement and non disclosure agreement as a condition of post employment benefits. I've heard of non disclosures but that was the first I heard of cooperation agreements.
@mahmga1
@mahmga1 Жыл бұрын
Keep up the incredible reporting on youtube! Obviously non-competes are bad for employees, competition, and wages.
@esmael.c2b
@esmael.c2b Жыл бұрын
In short; you're a slave to the corporation while working there, and after leaving
@ΣαββαςΚωτσακης
@ΣαββαςΚωτσακης Жыл бұрын
I am always surprised of how far behind is employment law in the US
@MrJoelMartinez
@MrJoelMartinez Жыл бұрын
Non compete should be illegal at the very least be rendered null when the company lays the person off.
@laughingvampire7555
@laughingvampire7555 Жыл бұрын
if they want you to stop working on the field for a year then they should pay you for that year without working for them.
@jakaz77
@jakaz77 Жыл бұрын
I refused to sign one and laughed at them when they brought it up. You hired me for my skill and unless you want to pay for all the potential earnings for those skills, for exclusive rights, you will have only what you pay me for while your paying me for it. Still got hired. Remember they need workers with skills. Get skills and set standards.
@lengealaw
@lengealaw Жыл бұрын
Great insights!
@EnlightenedMinarchist
@EnlightenedMinarchist Жыл бұрын
No one puts a gun to your head and forces you to sign a legally-binding contract. Stop signing contracts whose terms you dont agree with.
@allenmobley8444
@allenmobley8444 Жыл бұрын
True however not signing it would void your employment… so yeah
@johnnynick6179
@johnnynick6179 Жыл бұрын
@@allenmobley8444 Are your job skills so weak that you can't say no and get a job somewhere else?
@sor3999
@sor3999 3 ай бұрын
You can't just put anything you want in a contract. 🙄 I highly doubt you read every bit of fine print before you work somewhere.
@EnlightenedMinarchist
@EnlightenedMinarchist 3 ай бұрын
@@sor3999 No. But Im also not going to complain if I agree to something without reading it. I'll be like "Damn. I shouldve read before I signed". Also, everyone who signs a non-compete knows they are signing a non-compete.
@EnlightenedMinarchist
@EnlightenedMinarchist 3 ай бұрын
@@sor3999 The problem isnt with them putting whatever they want in a contract. The problem is with people knowingly agreeing to something when it is convenient for them to do so, then complaining when it becomes inconvenient, when they made the choice to enter that agreement in the first place.
@chrisr897
@chrisr897 Жыл бұрын
In the meantime: The broader a non compete the less enforceable it is, your former employer can’t unreasonably limit your ability to earn a living and you can’t use proprietary information for your own benefit, the big thing not to do is bring customers with you, both examples (hairdresser, fin planner) probably did that, you will always lose if you take customers. If you’re going to a competitor, you should document you’ve provided your non compete to your new employer and that they accept the liability of your defense.
@2WhiteAndNerdy
@2WhiteAndNerdy 9 ай бұрын
But they're gonna try! And it's gonna cost you to fight it!
@MONi_LALA
@MONi_LALA Жыл бұрын
Colorado made the law regarding the non-compete clause pretty much banned for using. I'm really happy to hear that because I signed the clause. It's a small field and there's not a lot of places you can go. In the clause, it said I can't find a job with competitors and start my own business within 1 yr or within 25 mi. We are in the middle of denver so it's pretty much all of denver.
@dancinboi89
@dancinboi89 Жыл бұрын
Unless the company had a severance package that lasts the entirety of the NCA then who are they to tell someone what they can do with the degree they paid for? Craziness
@timberwolfe1645
@timberwolfe1645 Жыл бұрын
I understand trade secrets....but if I sign a non-compete, you BET I'm demanding at least 20k a year extra. If they ask why, I say that's the price of my unemployment for x years that I cannot work. Then I work same company 40 years and get 20k extra a year 🙃 😅 🙂
@angelinimartini
@angelinimartini Жыл бұрын
That’s funny. I was just talking to a friend about this. His non compete is indefinite. The company he works for also is not providing him steady employment as he is an independent contractor that relies on them finding him jobs. I think it’s sickening that they can make him stay indefinitely without work in his field and enforce this clause.
@jamesodell3064
@jamesodell3064 Жыл бұрын
They might not be able in enforce and indefinite non compete, depends on the state he lives in. Courts generally do not like indefinite non competes. He should talk to an employment attorney in his state.
@angelinimartini
@angelinimartini Жыл бұрын
@@jamesodell3064 for sure. I don’t think so either. But for as long as he is working for them, he can’t go and get another job regardless. Even though it’s not fully enforceable, they could still go after him for a certain amount of time. It makes it quite the complicated situation. We also live in Texas and I believe that he would be on the losing end in court regardless.
@longbeach225
@longbeach225 Жыл бұрын
So if companies doing this it means their company is not good since they cannot compete. Anything to keep wages down while the CEO lives like a king!
@dznrboy
@dznrboy Жыл бұрын
Companies that have non-compete clauses are red flags to what the company culture is like and what they think of their employees.
@OB-7380
@OB-7380 Жыл бұрын
In Florida, non-compete contracts are out of control. Some companies even gave you an offer and send you the contract with small lines at the end were its mention that contract it's contingent to a non-compete and non-intention agreement signature. I was through this with one Sprinkler Company and when I ask for a copy of both contingencies I declined the offers, it was a trapped. Them I understood why all previous designers moved to work to others states. They couldn't work in a 50 miles around for 2 years.
@karlisern2475
@karlisern2475 Жыл бұрын
I agree that FTC should ban Non-Compete Clauses / Agreements nation-wide. As mentioned in the video if a former employer (a) has solid reason to believe that another employer (b) has benefited from employer (a)'s intellectual knowledge, then employer (a) has other avenues to raise a lawsuit against employer (b). Non-competes only serve to entrap and enslave employees. e.g. Years ago, I had a workmate who tried to change jobs, his existing company told him that they would use his non-compete agreement to stop him from leaving the company. My workmate regressed into depression, became hooked on the drugs he was given to deal with the anxiety and depression, and he ended up in narcotics rehab. Non-Competes are absolutely evil, and FTC needs to abolish them once and for all!
@laurenralph5968
@laurenralph5968 Жыл бұрын
A company that dose this to it’s workers is grimy and nasty and down right wrong I hope someone succeeds in the band of this ridiculous and unconstitutional way to take hold of a person trying to find another job if the current job wasn’t working out
@kcardwell64
@kcardwell64 Жыл бұрын
I signed a non compete and it sucks. I didn’t understand what I was signing. I didn’t understand how serious it is.
@TheMrgoodmanners
@TheMrgoodmanners Жыл бұрын
the very definition ofsuch a contract shows how unconstitutional and antithetically american it is.
@mugishagabriel6074
@mugishagabriel6074 Жыл бұрын
Non competes make sense to me and I fully support them. It is unfair for a business to build a product or service, go through extensive research and development on what works and what doesn't just so a former employee can pick out what works and go start a business or work for a competitor who could gain from that experience.
@flyer3455
@flyer3455 Жыл бұрын
You're assuming that every company is doing something innovative when they're not. Even if they are, lower level employees who know nothing are forced to sign these agreements. Would it make sense to tell an Uber driver he can't work for Lyft until his two years is up?
@mugishagabriel6074
@mugishagabriel6074 Жыл бұрын
@@flyer3455 that makes sense when you bring up low level jobs like Uber. But for high level jobs, non competes are justifiable.
@2012bigPerm
@2012bigPerm Жыл бұрын
So the FTC is looking into non-compete clauses? Must be some important rich people that are upset. 2023 and I still don't have broadband.
@BusyBodyVisa
@BusyBodyVisa 2 ай бұрын
Originally there was a good purpose for non-competes; it was meant to stop executives who had all the trade secrets from just starting their own companies but later companies abused it to over low wage workers.
@bocanjm215
@bocanjm215 Жыл бұрын
I agree with the FTC. If I work in a warehouse for 10 years and leave, my resumé will say that I've worked in a warehouse for 10 years. Now I can't get a job in an industry that I have 10 years of experience in. Total B.S. I understand high-level executives having non-competes because of their knowledge of company operations, but lower level employees don't make enough money to hold out for a year.
@joekev27
@joekev27 Жыл бұрын
I mean im pretty sure my union has something like this but try and get a job that has the same safety, pay and benefits . It just cant be done and im totally fine with it. Being in the union is the best decision ive ever made.
@josejoya4520
@josejoya4520 Жыл бұрын
Yeah but this doesn't affect you, since it sounds like you wouldn't leave based on what you said.
@mgrotheer
@mgrotheer Жыл бұрын
These way these non-competes function are evil
@flowerforsyte5671
@flowerforsyte5671 4 ай бұрын
How is this sort of thing happening in America? The so-called "Land of the Free".
@leonlee877
@leonlee877 Жыл бұрын
I've been told by lawyers that these lawsuit don't hold up in court because judges say that this prevents people from making a living. Has anyone hard about this?
@noseboop4354
@noseboop4354 Жыл бұрын
Your lawyer is wrong, these non-competes do hold up in court as long as the scope isn't too big. Just watch the video, the court held up the non-compete against that hair salon worker.
@jeffb5798
@jeffb5798 Жыл бұрын
I've heard the same (that they don't hold up in court). The problem/issue though, is that going to court cost a lot of money. Regardless of whether the employer is a Fortune 500 company, a university, or a startup, they have substantially more money for layers and litigation than an individual does, and they will defend their position no matter how much it costs.
@RichardAmesMusic
@RichardAmesMusic Жыл бұрын
I've never heard of them going to court and I know dozens of people who have had non-compete clauses. You get a nasty letter but everybody knows they're not enforceable, so everybody ignores them. I suspect there's more to the story in the examples from this video - they might have had non-compete clauses but I bet if you dig into the lawsuits you'll see some other basis for the claims.
@TobinOsusky
@TobinOsusky Жыл бұрын
literally the scummiest thing a company can do is make employees sign non-competes. Most of the time they are actually illegal. And remember, it's only applicable for linear positions. So you can go from employee to management or owner and not infringe upon a non-compete. Even though non-competes are the most unethical thing every put into place in the business world. The US is broken in all aspects but mostly in the sense that slavery still exists and employers are the new plantation owners, plain and simple. They do not want anyone else to thrive or survive and hence illegal, disgusting policies.
@ledwysdelgado7304
@ledwysdelgado7304 Жыл бұрын
I wonder if these are the same employers that scream and yell free market.
@idle4407
@idle4407 Жыл бұрын
Employees are providing a service to their ex-employers by not going to their competitor or starting a competing business. The contracts themselves should be illegal if the workers are not compensated for the service they provide after they have left the job. Sometimes there maybe a legitimate reason for non compete clause. But to discourage employers from stifling competition and randomly binding folks into non-compete clause, the non compete service should be a very expensive by law, at least 2 or 3 times employees pay. This will protect both employees and employer interests without stifling competition as much.
@BusyBodyVisa
@BusyBodyVisa 2 ай бұрын
I worked for a company for 5 months and was fired, I started my own business and got my own customers. My former boss tried to sue me but the judge threw it out because non-compete clauses are banned in California. If my boss had gotten his way I would've been prevented from competing with him for three years even though I only worked there for 5 months.
@IrshadAli-qi1lq
@IrshadAli-qi1lq Жыл бұрын
I'm suffering from this non-compete nonsense, I pray they get rid of it.
@2WhiteAndNerdy
@2WhiteAndNerdy 9 ай бұрын
There are companies that lay thousands of people off (for quarterly boosts), then tell them they are bound by the non-competes and NDAs. WTF?!
@nikitakucherov5028
@nikitakucherov5028 Жыл бұрын
Non competes don’t exist for lawyers (that tells you EVERYTHING)
@SickStyle201
@SickStyle201 Жыл бұрын
Imagine if it was more than 1-2 years of a NCC
@patrickporter4242
@patrickporter4242 Жыл бұрын
If you have access to proprietary information or processes then it absolutely makes sense. In addition, if you have relationships with a companies clientele then it’s the same thing. You should be limited for a few years. The same is not true for hourly or entry level roles.
@protoman482
@protoman482 Жыл бұрын
Thank you FTC for actually doing something to try to deal with this issue.
@jr_san
@jr_san Жыл бұрын
Anything that benefits the little guy is always hotly contested by those with who are stomping on the little guy. FTC FTW!
@TheOOOOOOOOOOOOOOO
@TheOOOOOOOOOOOOOOO Жыл бұрын
This is a good video but why not post it much earlier? The deadline for sending comments to the FTC was over a month ago.
@Re_RAM
@Re_RAM Жыл бұрын
Non-Compete clauses should be ruled unlawful because they are entered into by parties not of equal standing. It can’t be right that the employer, who has all the power in most employment contracts, demand further protection from an individual without any proof that the employer seeking employment elsewhere would harm their business.
@sexygeek8996
@sexygeek8996 Жыл бұрын
This is particularly true if the employer demands it after someone has started working. That should be invalid because it was signed under duress.
@shopece8807
@shopece8807 Жыл бұрын
Non-SOCILICITATION clauses need to also be added in. They are just as annoying and a hindrance into upward mobility and professional/career growth.
@lumski
@lumski Жыл бұрын
When unelected officials care more about you than your elected law makers, you should reconsider your choices
@johnpatrick1588
@johnpatrick1588 Жыл бұрын
The only time I have been involved with non-competes is when I sold or bought businesses and was fairly compensated.
Why It's So Hard To Be A Worker Right Now | CNBC Marathon
28:01
How Jaguar Plans To Save Itself
16:36
CNBC
Рет қаралды 217 М.
How Many Balloons To Make A Store Fly?
00:22
MrBeast
Рет қаралды 174 МЛН
Turn Off the Vacum And Sit Back and Laugh 🤣
00:34
SKITSFUL
Рет қаралды 10 МЛН
Как Я Брата ОБМАНУЛ (смешное видео, прикол, юмор, поржать)
00:59
Одну кружечку 😂❤️
00:12
Денис Кукояка
Рет қаралды 2,9 МЛН
The FTC Just Banned Non-Competes: Here's What It Means For You
4:51
More Perfect Union
Рет қаралды 141 М.
Should you sign an NDA? What does it mean if you do.
6:53
Rafael Ludwig
Рет қаралды 41 М.
Non-compete clauses
3:13
Senator Bernie Sanders
Рет қаралды 2,4 М.
FTC Chair Lina Khan wants to keep fighting non-competes
5:49
60 Minutes
Рет қаралды 33 М.
Why American Cars Are So Expensive
13:53
CNBC
Рет қаралды 1,9 МЛН
Why Dollar Stores Are Struggling
13:28
CNBC
Рет қаралды 777 М.
How Many Balloons To Make A Store Fly?
00:22
MrBeast
Рет қаралды 174 МЛН