this post was submitted on 24 Apr 2024
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The U.S. Chamber of Commerce, the country's largest business lobby, filed a lawsuit on Wednesday seeking to strike down a federal agency's near-total ban on employers requiring workers to sign agreements not to join rivals or launch competing businesses.

The Chamber's lawsuit in federal court in Tyler, Texas, alleges that the U.S. Federal Trade Commission lacks the power to adopt sweeping rules such as the ban on so-called noncompete agreements released on Tuesday, which is set to take effect in August.

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[–] kryptonianCodeMonkey@lemmy.world 32 points 3 months ago (2 children)

On one hand, businesses want to ensure that their investments in training and their corporate secrets are not walking out the door and into the hands of their competition. On the other hand, businesses can use other means to help mitigate that without removing the freedom of employment choice of their employees. You don't get to require an agreement that effectively locks your employees to your business, especially when employees do not get guarantees of continued employment in return.

Imagine being laid off by your company and simultaneously being contractually restricted from seeking a similar position with another company. At best, you may need to move far away. At worst, you may need to find a completely new way to make a living. None of that was your fault or choice. You were obligated to sign the non-compete to get any job at all in your field. That's the truth for millions.

Employers cannot hold all the cards.

[–] dual_sport_dork@lemmy.world 28 points 3 months ago

especially when employees do not get guarantees of continued employment in return.

Dingdingdingdingding. Give the man a cigar.

If you want to give me tenure, I'll think about non-competing. Otherwise, the free market these bastards claim to like so much is a two way street.

[–] some_guy@lemmy.sdf.org 10 points 3 months ago (1 children)

Just signing an NDA should be sufficient.

[–] kryptonianCodeMonkey@lemmy.world 7 points 3 months ago* (last edited 3 months ago)

Correct. But I'm sure their argument would be something to the effect that they wouldn't reasonably be able to know what the former employee actuality disclosed to their competitor and would be even less likely to be able to prove it making the NDA unactionable and functionally useless in that case. That's why they'd rather prevent you from working for the other company altogether to avoid that. Unfortunately for them, they're just going to have to trust their former employees. Which probably also means they should treat them well so they're not incentivized to fuck them over.

[–] Carrolade@lemmy.world 29 points 3 months ago (1 children)

Competition is good? Huh, what a novel idea.

[–] girlfreddy@lemmy.ca 25 points 3 months ago (1 children)

It's only good when it benefits companies and rich people. If it helps us peons, it's bad.

[–] Blackbeard@lemmy.world 14 points 3 months ago

"Competition for THEE, not for ME."

[–] AshMan85@lemmy.world 28 points 3 months ago (1 children)

Non competes are anti capitalism.

[–] acutfjg@feddit.nl 11 points 3 months ago (1 children)

Isn't competition a core ideology of capitalism?

[–] AshMan85@lemmy.world 3 points 3 months ago
[–] TipRing@lemmy.world 21 points 3 months ago (1 children)

Filed in Tyler, TX because of course it is. Looking to get an immediate injunction and favorable ruling from their favorite federal judge.

[–] girlfreddy@lemmy.ca 11 points 3 months ago

That Chamber of Commerce L O V E S judge shopping.

[–] some_guy@lemmy.sdf.org 11 points 3 months ago

U.S. Chamber of Commerce can suck it.

[–] dogslayeggs@lemmy.world 6 points 3 months ago

Someone in the thread about this yesterday said, "lawsuit incoming in 3, 2, 1..."