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Trump appointed Judge overturns Biden ban on non-compete clauses

Discussion in 'Too Hot for Swamp Gas' started by WarDamnGator, Aug 20, 2024.

  1. OklahomaGator

    OklahomaGator Jedi Administrator Moderator VIP Member

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    My understanding is for a non-compete to be enforced there must be some sort of compensation for it.
     
  2. pkaib01

    pkaib01 GC Hall of Fame

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    So you are "for" predatory non-competes for low wage employees that are often made under duress or without the power to negotiate? The compassion in your heart is truly overwhelming.
     
  3. GatorBen

    GatorBen Premium Member

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    It’s generally consideration rather than necessarily getting more compensation.

    And, in many states, the initial job offer (if they have to sign the non-compete from the very beginning) can be that consideration (and frequently the job offer expressly says it is and that the employment offer wouldn’t be extended without agreement to the non-compete).
     
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  4. gator_lawyer

    gator_lawyer VIP Member

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    LOL. Thanks, Mr. Lochner. Yes, I'm sure workers are furious that the FTC passed a rule that enhanced their freedom, just like all the students who were furious over loan forgiveness. Non-competes are unenforceable in California and in the legal profession, generally speaking. California is doing just fine, and attorneys are doing just fine.

    Good on the FTC. Sad that the Republican politicians in robes have decided to jump in again to exercise control over policy they dislike.
     
  5. GolphinGator

    GolphinGator GC Hall of Fame

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    As far as someone flipping burgers at McD's that leaves for BK there is no was McD's would attempt to enforce a no compete even if there was one. First it would cost them money and second they would lose anyway. Now management that knows trade secrets might sign one and if so the company might try and enforce it in some cases. Just because a company has a signed no compete it does not mean they will use it in all cases.
     
  6. gator_lawyer

    gator_lawyer VIP Member

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    The employee doesn't know that, which influences the choices they make.
     
  7. wgbgator

    wgbgator Premium Member

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    Yeah, its leverage for employee retention in a notoriously high labor turnover business. If they have to enforce it, its already failed its intent.
     
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  8. WarDamnGator

    WarDamnGator GC Hall of Fame

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    Maybe, but as mentioned in the articles I linked, they absolutely did enforce them internally, preventing workers from moving to different stores in the same franchise if better opportunity opened. I.e., if someone wanted to advance to a shift manager position but it wasn’t open at their McD, but that position opened at a nearby McDs, they could not be hired.
     
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  9. OklahomaGator

    OklahomaGator Jedi Administrator Moderator VIP Member

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    As an employer, I would never deny an employee an opportunity to advance either with the company or with another company.
     
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  10. G8R92

    G8R92 GC Hall of Fame

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    McDonald's stopped in 2017 and others have followed suit.


    Biden said that McDonald’s workers sign a noncompete agreement that bars them from taking a better paying job with a competing chain. McDonald’s did have a clause in its franchise agreements between the corporation and local owners that blocked them from hiring away staff from each other. McDonald’s ended that practice in March 2017, and since then, over 150 national chains have followed suit.

    That practice involves a no-poach clause, not a noncompete clause, which has to do with working for a competitor. McDonald’s workers do not sign a noncompete agreement.

    We rate this claim False.


    Biden’s false claim about restrictions on McDonald’s workers
     
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  11. jhenderson251

    jhenderson251 Premium Member

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    Did the FTC try to ban NDAs as well? That seems more like what you're describing.
     
  12. gatorpa

    gatorpa GC Hall of Fame

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    So this isn’t really about giving McDonlads workers freedom to go flip burgers elsewhere
     
  13. gator_lawyer

    gator_lawyer VIP Member

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    An interesting thread with some examples of the harm noncompetes do:
     
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