The Federal Trade Commission narrowly voted Tuesday to ban nearly all noncompetes, employment agreements that typically prevent workers from joining competing businesses or launching ones of their own.
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I'm in for competing with the Hon. I'd probably do it for free... Wait... Is that what Hon is thinking?
My lawyer told me that non-compete agreements are extremely hard to enforce at best. The nondisclosure of Honeywell IP and no direct recruiting (poaching) for two years after leaving is what I signed. There was one tiny detail that Honeywell overlooked: it was only in effect if I was involuntarily terminated (RIF or for cause). There isn't any Honeywell IP worth sharing with competitors. I left voluntarily and didn't worry about any of that sewage.
Pretty soon somebody will pass a bill. Which states when she take a job in the aerospace industry. You no longer can work for any other competitor. No matter what your position is.
So when they RIF you, or lay off. They will have the last laugh. Starting to be like a prison sentence.
There won't be any time reduced for serving. If you have good behavior, it'll be like Wonka the movie. You'll be stuck there forever. Maybe like Wonka the movie. You can start singing and dancing. Praying for death, being fired, furloughed or fired. This is why we have a cemetery across the street. Y'all praying to get there.
Company going to love this one. Hello job hopping.
This is a good ruling, as noncompetes stymie innovation and suppress wage growth. My specific agreement with Honeywell is a nonsolicitation / IP nondisclosure, which is NOT a noncompete and falls within the realm of fair (can’t poach talent to come with you, can’t steal IP or reveal what is in the development pipeline). I don’t know how many variations of this agreement exist or if Honeywell has literal noncompete clauses in anyone’s employment contract.
I have been in jobs with noncompetes that were very much enforced across the board, not just executives.
The ban, which will take effect later this year, carves out an exception for existing noncompetes that companies have given their senior executives, on the grounds that these agreements are more likely to have been negotiated. The FTC says employers should not enforce other existing noncompete agreements.
When I was at Honeywell middle management people were offered non compete contracts and given 30k to 40k to sign them. Some did some didn’t. They did enforce them
This new ruling only affects new non competes going forward. Existing ones may still have force.
It was used as a bullying tactic and implied threat as you were coerced to sign something saying you would tell Honeywell who your employer was for the next couple years and had to let those employers you had signed a no-compete clause (which might limit your ability to work in/on your area of expertise). This would make many folks think twice about other jobs, particularly with competitors. Not really enforceable, but it is a club they could choose to use as they have the deeper pockets. You would swear Honeywell was in the olive oil business.
Nobody has cared about non competes below the executive level for years. Rich guy problem