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Poll results

Noncompete agreements, long a staple in many industries, have attracted a firestorm of attention recently.

The agreements are usually a condition of employment and prevent hirees from later going to work for an employer's competitors, or sharing proprietary information with them.

But in April, the Federal Trade Commission issued a rule banning noncompetes. Most existing agreements will not be enforceable, and all future ones will be forbidden. The goal, according to the FTC, is to protect the freedom of workers to change jobs, while increasing innovation and the creation of new businesses.

A federal lawsuit in Texas immediately contested the ban, however, and on July 3 a judge approved an injunction delaying its start.

The FTC estimates that 30 million people — one in five U.S. workers — are bound by a noncompete agreement of some kind in their current jobs.

How do you feel about the federal government's new ban on noncompete agreements?
The ban is misguided and wrong, and noncompetes should be allowed as they have been. (26%, 64 VOTES)
There should be some restrictions on noncompetes, even if the current ban isn't the right solution. (43%, 107 VOTES)
The ban on noncompetes is a good step that will help employees and entrepreneurs. (30%, 75 VOTES)
Poll Description

Noncompete agreements, long a staple in many industries, have attracted a firestorm of attention recently.

The agreements are usually a condition of employment and prevent hirees from later going to work for an employer's competitors, or sharing proprietary information with them.

But in April, the Federal Trade Commission issued a rule banning noncompetes. Most existing agreements will not be enforceable, and all future ones will be forbidden. The goal, according to the FTC, is to protect the freedom of workers to change jobs, while increasing innovation and the creation of new businesses.

A federal lawsuit in Texas immediately contested the ban, however, and on July 3 a judge approved an injunction delaying its start.

The FTC estimates that 30 million people — one in five U.S. workers — are bound by a noncompete agreement of some kind in their current jobs.

  • 246 Votes
  • 7 Comments
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7 Comments

  • July 8, 2024

    Non-compete agreements are increasingly outdated in today’s information-rich era. With easy access to industry insights, client information, and statistics, restricting employee mobility through non-competes is less justifiable. Instead, non-disclosure agreements (NDAs) offer a more balanced approach, protecting sensitive information while allowing employees the freedom to pursue new opportunities. Encouraging this shift fosters positive relationships, ensuring mutual respect between employers and former employees, and ultimately contributes to a more dynamic and innovative job market.

  • James Hennemann
    July 8, 2024

    If you want to have an non-compete, you should have to pay the employee for the time you do not allow them to go earn a living.