4 ms·

FTC adopts a comprehensive ban on new noncompetes with all workers

186 points by nfriedly 2y ago

loceng 2y ago
Next step to level the playing field: eliminate patents. Getting rid of non-competes is a matter of levelling the playing field in free market capitalism, no?
nfriedly 2y ago
"Existing noncompetes with workers other than senior executives are not enforceable after the effective date." Going forward, new no new non-competes are allowed, even for senior executives.
- adastra22 2y ago
  Isn’t that quite saying the opposite? Or are you clarifying something the article got wrong?
  - Kerb_ 2y ago
    New non-competes will not exist for anyone, including senior executives. Existing non-competes will only exist for senior executives. Both statements are true. From the article "For existing noncompetes, the final rule adopts a different approach for senior executives than for other workers. For senior executives, existing noncompetes can remain in force. Existing noncompetes with workers other than senior executives are not enforceable after the effective date."
    - adastra22 2y ago
      Thanks
  - nfriedly 2y ago
    Yeah, it was meant to clarify the title, but it looks like the title got changed after I posted that.
gnabgib 2y ago
Giant ongoing discussion:[0](834 points, 331 comments) [0]: https://news.ycombinator.com/item?id=40136010 https://news.ycombinator.com/item?id=40136010
songspire3 2y ago
Forgive my shortsighted thinking, but how does this lower healthcare costs? It was mentioned as a main point, but I'm not sure how banning noncompetes would impact that.
- filoleg 2y ago
  My best guess: if you want to switch jobs and you are under a non-compete, you have to wait for a period of time before starting a new job at a competitor (typically 6-12 months, fairly common in finance). During that in-between period while you are waiting for the non-compete to expire, you aren’t covered by health insurance. And not being covered by health insurance usually increases healthcare costs.
  - lupire 2y ago
    Incorrect, due to COBRA https://www.dol.gov/agencies/ebsa/laws-and-regulations/laws/cobra https://www.dol.gov/agencies/ebsa/laws-and-regulations/laws/...
    - jrockway 2y ago
      Do people actually sign up for COBRA? Last time I quit a job it was like $3000/month. I took my chances instead.
      - koolba 2y ago
        COBRA is simply the full price of the plan plus a small (~2%) premium. The “better” your coverage was while employed, the more expensive your COBRA plan payment would be because you’re paying for the whole thing.
        sudosysgen 2y ago
        Not quite, you pay a lot more because it's not deductible.
      - 2y ago
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ChrisArchitect 2y ago
[dupe] Discussion on official release: https://news.ycombinator.com/item?id=40136010 https://news.ycombinator.com/item?id=40136010
worik 2y ago
These have been illegal for ever in New Zealand, unless you (employer) pays for it But nobody used to know that. They were routinely part of employment contracts, unenforceable, but it's what you believe that counts Bad, mad, low life scum
deleted 2y ago
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186 points by nfriedly 2y ago

Next step to level the playing field: eliminate patents. Getting rid of non-competes is a matter of levelling the playing field in free market capitalism, no?

nfriedly 2y ago

"Existing noncompetes with workers other than senior executives are not enforceable after the effective date." Going forward, new no new non-competes are allowed, even for senior executives.

adastra22 2y ago
Isn’t that quite saying the opposite? Or are you clarifying something the article got wrong?
- Kerb_ 2y ago
  New non-competes will not exist for anyone, including senior executives. Existing non-competes will only exist for senior executives. Both statements are true. From the article "For existing noncompetes, the final rule adopts a different approach for senior executives than for other workers. For senior executives, existing noncompetes can remain in force. Existing noncompetes with workers other than senior executives are not enforceable after the effective date."
  - adastra22 2y ago
    Thanks
- nfriedly 2y ago
  Yeah, it was meant to clarify the title, but it looks like the title got changed after I posted that.

gnabgib 2y ago

Giant ongoing discussion:[0](834 points, 331 comments) [0]: https://news.ycombinator.com/item?id=40136010 https://news.ycombinator.com/item?id=40136010

songspire3 2y ago

Forgive my shortsighted thinking, but how does this lower healthcare costs? It was mentioned as a main point, but I'm not sure how banning noncompetes would impact that.

filoleg 2y ago
My best guess: if you want to switch jobs and you are under a non-compete, you have to wait for a period of time before starting a new job at a competitor (typically 6-12 months, fairly common in finance). During that in-between period while you are waiting for the non-compete to expire, you aren’t covered by health insurance. And not being covered by health insurance usually increases healthcare costs.
- lupire 2y ago
  Incorrect, due to COBRA https://www.dol.gov/agencies/ebsa/laws-and-regulations/laws/cobra https://www.dol.gov/agencies/ebsa/laws-and-regulations/laws/...
  - jrockway 2y ago
    Do people actually sign up for COBRA? Last time I quit a job it was like $3000/month. I took my chances instead.
    - koolba 2y ago
      COBRA is simply the full price of the plan plus a small (~2%) premium. The “better” your coverage was while employed, the more expensive your COBRA plan payment would be because you’re paying for the whole thing.
      - sudosysgen 2y ago
        Not quite, you pay a lot more because it's not deductible.
    - 2y ago

deleted 2y ago

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deleted 2y ago

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ChrisArchitect 2y ago

[dupe] Discussion on official release: https://news.ycombinator.com/item?id=40136010 https://news.ycombinator.com/item?id=40136010

worik 2y ago

These have been illegal for ever in New Zealand, unless you (employer) pays for it But nobody used to know that. They were routinely part of employment contracts, unenforceable, but it's what you believe that counts Bad, mad, low life scum

deleted 2y ago

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