The TimesUnion reported today on the recent FTC ruling banning the use of non-compete agreements. Business groups have of course sued, because non-compete agreements allow them to make it difficult for workers to receive a fair wage (since the agreement limits free-market competition for their skills and time).
The article does point out that some states already had a ban on the agreements, though it makes it seem like California’s was recent. Part of why Silicon Valley has been the source of so much growth in the tech industry is because non-compete agreements there couldn’t cover tech employees. I’m not sure whether California recently updated their law, or if the TU just didn’t get the details quite right.
Of course, what business groups and defenders of non-compete agreements seem to ignore is that if they’re worried about their employees jumping ship for better pay, they have an easy option: they can pay their employees competitively (and treat them ethically).
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