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> Once it hits, all existing non-compete agreements will be nullified, except for those applying to executives in “policy-making positions” who make at least $1
by rco8786 3y ago
> Once it hits, all existing non-compete agreements will be nullified, except for those applying to executives in “policy-making positions” who make at least $151,164 a year.
Anyone have insight into why that particular number was chosen?
- madcaptenor 3y agoMy guess is that it's some multiple of the average wage, or some threshold from previous legislation (maybe SEC?) that started out as a round number but has been adjusted for inflation. But I can't find references to it anywhere outside of law firms' hastily written SEO pages.
- madcaptenor 3y agoOn further research: It's the Department of Labor's definition of "highly compensated employee" (https://www.dol.gov/agencies/whd/overtime/rulemaking/faqs https://www.dol.gov/agencies/whd/overtime/rulemaking/faqs), which is the "annualized weekly earnings of the 85th percentile of full-time salaried workers nationally". Not sure why they pick the 85th percentile specifically but it feels like a less arbitrary number.