this post was submitted on 23 Apr 2024
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The FTC’s three Democratic members were in favor of adopting the regulation, while its two Republican members were against it.

...

“The FTC estimated that the ban would boost wages by between $400 billion and $488 billion over 10 years.”

Employers are required to tell people that existing noncompetes are void:

The new rule makes it illegal for employers to include the agreements in employment contracts and requires companies with active noncompete agreements to inform workers that they are void. The agency received more than 26,000 comments about the rule after it was proposed some 16 months ago. The rule will take effect after 120 days, although business groups have promised to challenge it in court, which could delay implementation.

New York Times coverage for comparison

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[–] [email protected] 96 points 6 months ago (1 children)

Good old Republicans, unable to even look like they give a shit about common employees.

[–] [email protected] 15 points 6 months ago (1 children)

This isn't even common employees, C- levels hate this too. Republicans and just being miserable bastards to everyone, name a better combo.

[–] [email protected] 1 points 6 months ago

Boards don’t like it though. They’d rather spend $100 million (maybe way less though, politicians are cheap) to fight to save $400 billion in the long run.

[–] timewarp 47 points 6 months ago (2 children)

Now do arbitration agreements in employment contracts. Good luck arguing that the employer is still enforcing non-competes, when you have to do it in confidentiality through an arbitration provider your employer has already pre-selected.

[–] Buddahriffic 11 points 6 months ago (1 children)

Do NDAs used to cover up illegal shit, too. Settlements shouldn't be able to include anything to make the settlement or circumstances around it secret. It just enables them to continue doing what they were doing to others.

[–] FlowVoid 9 points 6 months ago* (last edited 6 months ago) (2 children)

An NDA cannot be used to stop you from reporting a crime to the police or filing a lawsuit.

[–] Buddahriffic 6 points 6 months ago (3 children)

Yes, but it can be used to prevent you from informing other people being exploited by the other party about how you fought them and how it worked out for you. In theory anyways, I'm not aware of any cases where such an NDA was breached and a lawsuit resulted. The Streisand effect might actually prevent some companies from following through and they hope the presence of the NDA is enough of a deterrent. Or maybe the courts are liberal with gag orders about such cases.

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[–] timewarp 0 points 6 months ago (1 children)

Actually, in many cases courts have permitted employers to compel arbitration even against civil RICO claims.

[–] FlowVoid 2 points 6 months ago

That has nothing to do with an NDA. An NDA limits what you can say, an arbitration agreement limits how you can pursue a civil claim.

[–] FlowVoid 10 points 6 months ago* (last edited 6 months ago) (1 children)

Arbitrators can't issue injunctions (ie they can't order you not to work somewhere), so they don't really have any way to enforce a non-compete.

[–] timewarp 0 points 6 months ago (1 children)

You're missing the point. Getting a court to review an arbitrator's decisions can be extremely challenging. And actually arbitrators can issue injunctions in many cases. What your'e thinking of is likely if they can compel arbitration themselves on an injunction you file in court.

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[–] CosmicCleric 43 points 6 months ago* (last edited 6 months ago) (4 children)

From the article...

The FTC’s three Democratic members were in favor of adopting the regulation, while its two Republican members were against it.

... and ...

The FTC’s rule does not include a salary threshold, but it has an exception for noncompetes when a business is sold.

The final rule also allows existing non-competes to be enforced for senior executives. But all other such contracts would be rendered unenforceable when the rule is implemented

~Anti~ ~Commercial-AI~ ~license~ ~(CC~ ~BY-NC-SA~ ~4.0)~

[–] [email protected] 30 points 6 months ago (1 children)

That exception is very much like the one in California, where the founders of a startup can be required to sign a noncompete when they sell it. Has essentially no material impact on anybody else.

[–] CosmicCleric 12 points 6 months ago* (last edited 6 months ago) (1 children)

Yeah it looks like they're trying to preserve somewhat of the non-complete clause viability for senior management especially when companies are bought and sold.

~Anti~ ~Commercial-AI~ ~license~ ~(CC~ ~BY-NC-SA~ ~4.0)~

[–] [email protected] 19 points 6 months ago (1 children)

I mean, this makes sense and is what a non-compete is for in the first place.

[–] CosmicCleric 8 points 6 months ago* (last edited 6 months ago) (2 children)

I mean, this makes sense and is what a non-compete is for in the first place.

The issue has been that lately corporations have been using it on everyone, not just senior management, to control their movement, and not have to pay them as much, as there's less competition from movement.

Though personally I don't think it should be used for anyone, as we need to allow as much competition as possible, so that we all can earn greater income through better salaries.

~Anti~ ~Commercial-AI~ ~license~ ~(CC~ ~BY-NC-SA~ ~4.0)~

[–] [email protected] 6 points 6 months ago

It isn't just corporations. I work for a less-than-10 employee company, and I had to sign a non-compete. Couple friends that I used to work with now work for another company that's even smaller, and they had to sign one as well.

[–] Passerby6497 2 points 6 months ago

Yeah, I, a lowly button pusher, had to sign a noncompete at my first real gig close to a decade ago. It was at least limited to working on shared clients at another employer, but it was still really annoying considering nothing I knew about that customer's ops that would have been considered proprietary.

[–] fidodo 27 points 6 months ago (2 children)

The FTC’s three Democratic members were in favor of adopting the regulation, while its two Republican members were against it.

Not surprising in the least. Of all the Republican hypocrisy their attitude towards workers using their value to increase their earnings is one of the worst. They claim that they support self reliance and building yourself up, but stuff like this shows that it's clearly a lie. They support businesses maximizing their earnings by charging what the market will bear, but as soon as a worker tries to do the exact same thing they lose their God damn minds.

[–] timewarp 16 points 6 months ago (1 children)

The Republicans would reinstate child labor and child marriage in a heartbeat if they could get away with it. In fact, they do get away with it in some of their states.

[–] fidodo 6 points 6 months ago* (last edited 6 months ago)

Reinstate? Both are still allowed in many Republican states and Republicans have been blocking any attempt to stop it.

[–] [email protected] 5 points 6 months ago

free market bro. oh wait. not like that!

[–] Olgratin_Magmatoe 10 points 6 months ago

“bOTh sIdeS ArE thE sAmE”

[–] bitchkat 2 points 6 months ago (3 children)

The FTC website says it has an exception for Senior Executives which it defines as people making over 151k and are involved in policy making decisions.

[–] AA5B 6 points 6 months ago (2 children)

Oh shit that’s low. A lot of engineers in high cost of living areas are going to need to argue they don’t make policy decisions

[–] Takumidesh 5 points 6 months ago

Given that non-competes were already hard to enforce and engineers (or any staff role) can easily answer no to questions like "are you an executive?" I don't think it's going to be hard.

[–] bitchkat 2 points 6 months ago

Or are all getting promoted to Senior Executive! But I think that's a good clause to greatly restrict who it applies to.

[–] [email protected] 3 points 6 months ago

Rhetorical question: why do bills like this include specific wage amounts when those amounts are bound to become obsolete? Why not make them a variable, like the percentage of the cost of living?

[–] [email protected] 2 points 6 months ago (1 children)

jeez that is sorta low espcially for large metropolitan areas.

[–] bitchkat 1 points 6 months ago

Its the "policy making decisions" clause that saves us.

[–] [email protected] 26 points 6 months ago (2 children)

The Jimmy John’s noncompete barred workers from taking a job at a competing business within two years of leaving. It defined a competitor as any business that is located within 3 miles of a Jimmy John’s and derives at least 10% of its revenue from “submarine, hero-type, deli-style, pita and/or wrapped or rolled sandwiches.”

Wouldn't want Subway to steal those sandwich secrets.

[–] [email protected] 4 points 6 months ago (1 children)
[–] [email protected] 2 points 6 months ago

You go to Hoagie Country, you take your life in your own hands.

[–] AuntieFreeze 4 points 6 months ago

Especially since they are owned by the same VC.

[–] 11111one11111 22 points 6 months ago (3 children)

Wait, the entirety of the FTC is 5 fucking people?

[–] FlowVoid 20 points 6 months ago

The FTC has about 1000 employees, including five commissioners.

[–] [email protected] 18 points 6 months ago* (last edited 6 months ago) (1 children)
[–] [email protected] 2 points 6 months ago* (last edited 6 months ago) (2 children)

Is that similar to our Supreme Court? Could conservatives stack that court and just destroy everything?

[–] [email protected] 11 points 6 months ago (1 children)

FTC commissioners have a limited term of office, and no more than 3 are allowed to be members of one party.

A future Republican President could in fact change this by appointing a Republican majority. This makes it incredibly important to not allow that. That means not just planning to vote, but checking your registration to make sure it hasn't been purged or in need of an update because you moved or changed names, volunteering and donating

[–] 11111one11111 1 points 5 months ago

Government ran entities are the bane of my existence but the FTC has always been a seemingly efficient and unbiased regulatory commission. They're fucked when it comes to regulating the tech industry but still less fucked than anyother boomer politician who vote on its laws.

I am a kid with the popcorn bucket entranced by the current and looming topic of intellectual property arguments. People rarely appreciate how fucking wild wild west the internet (even now) really is. Fuckin crawlers, scrapers, AI training all this shit is the smoke and tremors before Mt. St. Helen's.

You cant but a pack of gum anymore without agreeing to terms and conditions while at the same time its all but common knowledge none of them hold a lick of value in a court room.

The best part is normally in life you can have a decent gut feeling the way something will play out. But with this I have no fuckkng clue.

I mean aren't half the regulations around spamming emails covered by the FCC while the other half is FTC. Like think about this for a second. We live in 2024 where the internet is connected to implanted medical devices, it's tracking your driving habits, listening to you jerk off, storing every text message you ever sent, then backing up that plus every picture you ever took but surprisingly do not actually own all because it never leaves the apple servers...etc the point being how in the flying fuck is the there not a single regulatory committee over seeing the internet? IDK maybe it's because they would have to have open discussion about the very real very terrifying backdoor policy to software. Can't drop terabytes if child porn on you nemises' hard drive with out that little loophole in the system.

[–] Crashumbc 3 points 6 months ago

The controlling board, yes. How many does it take to sign off on final rules?

FYI the FTC has tens of thousands of employees.

[–] [email protected] 21 points 6 months ago

Lol, the two republiclowns voted no..... BUT they're looking out for ya right? Idiots.

[–] foggy 19 points 6 months ago (2 children)

Brb, poaching all my asshole former employers clients.

[–] [email protected] 4 points 6 months ago (1 children)

I assume the clients were getting royally fucked to be so poachable.

[–] foggy 2 points 6 months ago

Well welcome to web development support. It ain't worth $200/mo

[–] bitchkat 4 points 6 months ago (1 children)

Or the few good employees they have.

[–] foggy 1 points 6 months ago

Only once I can't handle it myself

[–] [email protected] 1 points 6 months ago

Well, naturally. Noncompetes are anti-capitalist and Republicans hate capitalism.

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