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I do agree with the general point that at least they should pay the employee bound by such agreements, so as to eliminate frivolous use. If it's really economic
by TheCowboy 12y ago
I do agree with the general point that at least they should pay the employee bound by such agreements, so as to eliminate frivolous use. If it's really economically important to a firm, they are more likely to demonstrate that by paying a cost.
But, is there really any reason not to outright ban them? Specifically, are there any strong economic arguments for allowing these?
It seems like everyone is worse off in an economy when talent has to sit on ice because these contracts, even if they still collect a salary they are no longer contributing to the wealth engine of society. It discourages more efficient uses of labor when people are effectively married to a company. It also seems like an inherently unfair practice with at-will employment being the rule.
This sounds like one of those ideas people hold up as protecting small businesses or start-ups from big corporations, but really doesn't end up being an advantage.
- TTPrograms 12y agoMy impression was that "proper" use of the noncompete was to pay the employee the same salary for the time period with the purpose of preventing IP and other valuable proprietary information from being transferred to a competitor. I think this is reasonable.
- eli_gottlieb 12y ago>But, is there really any reason not to outright ban them? Yes: making them pay the employee puts more money in workers' hands ;-). That is all.
- rmc 12y ago> Specifically, are there any strong economic arguments for allowing these? They benefit the employer, since it limits the job prospects of the employee.