The FTC announced today that noncompetes are now banned. This is a big move and will have widespread positive ramifications.
One of many reasons California prevailed as a tech/startup hub was the lack of non-compete enforcement by law. Employees could always jump from startup to startup or start new companies.
Noncompetes prohibit the transition of talent from one organization to another. It limits the transfer of ideas (through people) and the creation of new companies or startups.
This will have a monumental impact on innovation in the US.
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This is great news, Sriram!!! Thanks for bringing this to our attention.
Non-competes are a tool of the tech "warlords" who parasitically suck off the hard work of any one they can. They use non-competes and lawfare as weapons to gain monopoly positions that only benefit them. Society overall is the loser with non-competes.
They should finish this job and completely eliminate non-competes, unless a person is directly paid to not compete (the same wage they currently receive for the term of their non-compete) or if it involves the sale of a business where they materially benefit. Same concept. If you want to keep someone off the market, you should pay them a fair wage to do this.