I've always seen NDAs as the way most businesses protect themselves, along with Copyrights, Patents, and Trademarks as ways of protecting their intellectual property. To use non-competes as a way to do so seems redundant and overly punishing. Especially in the case of a layoff or firing, where an employee can be easily left jobless without warning.
@sangjai90
4 ай бұрын
One thing about the new FTC rule was that they specifically mentioned physicians as example because doctors that work in less populated area sometimes have to completely move out of the area to find a new job and that area loses a doctor that's already experiencing shortage. I heard that new rule actually exempts nonprofits which many hospitals are. Seemed counter intuitive..
@Kalysta
4 ай бұрын
This happened to me. Forcing doctors to stay at a place they hate because you’re afraid they’ll take patients with them is gross. I had to move to find a new job.
@TJPavey
4 ай бұрын
@@Kalysta they say it’s to prevent taking patients. In reality it’s probably more to do with keeping physician wages in check. Add in the current trend to stick salaries at “median” market and you have effective fixing of wages.
@catherinelynnfraser2001
4 ай бұрын
Stranger things have happened. The PGA has special status. Do you remember their flex when faced with better player returns?
@korn7809
4 ай бұрын
I almost see it as something like price fixing but without direct collusion. Employees don't have much choice when nearly every employer does the same thing.
@ewoodley82
4 ай бұрын
Or, in my case its something akin to "If you quit working for us, we may try to go after you for going to work for someone else" I work in a datacenter. I can understand my employer trying to keep their specific practices under wraps, but not general repair work, however the terms of the non-compete I signed would effectively keep me from working for 1 year after I quit
@greymouseher
4 ай бұрын
Non-competes can be very burdensome in software. If the non-compete is that you can't work for another company that produces
@YdenMk-II
4 ай бұрын
One of the first times I heard about non competes was in an episode of Kitchen Nightmares where Gordan was shocked that the only reason why the servers in the restaurant were still working there was because they had to sign a non compete and wouldn't be able to get another job. As you mentioned, things like this happening is what caused the FTC to actually try to do something about it but this whole blanket ban outside of the top of the top is going way too far IMO.
@xrogaan
4 ай бұрын
How do you get capitalism without competition? If those companies want to retain their employee, maybe they should give them an offer they can't refuse... No that one!
@ShadowTaiga
3 ай бұрын
@@xrogaan yup, capitalism doesn't work without competition. If you can't keep your workers you trained that's your problem not your workers.
@AgainstTheTide1980
4 ай бұрын
Make sure to like👍 subscribe, and share. Sharing is caring. 😁
@HoegLaw
4 ай бұрын
You're the best!
@timogul
4 ай бұрын
The way I view it is, Congress had the rights to pass laws regulating "fair practices." They passed the FTC act, delegating that responsibility to make such regulations. The courts then have the ability to check any judgement the FTC makes, and determine whether or not it goes too far. And then if congress disagrees with the courts on this, then they would further have the authority to pass new laws that reign in the FTC's mandate. I think that works, and I think it's the best way to do things, because otherwise business will always outrace government and get away with shenanigans that clearly violate the intent of the laws. Giving a more agile executive authority to put the brakes on those shenanigans is the only way to keep business effectively checked.
@ahettinger525
4 ай бұрын
(I'm not done watching yet, so my mind may be changed) It seems to me that they handed defining that over to the FTC, based on _Chevron v NRDC (1984)._ I don't _like_ _Chevron_ but until SCotUS changes it, it is what it is. I do like Jason Kennedy (in chat's) idea of the company has to pay 90% of the salary for the duration of the non-compete. EDIT: I do think this type of thing does seem to fit better in the USDoL's wheelhouse.
@HoegLaw
4 ай бұрын
A court might defer under Chevron, but that’s essentially why the two sides are arguing over the history of the act. Is the FTC’s move even “reasonable”?
@ahettinger525
4 ай бұрын
@@HoegLaw Unfortunately I think everything about _Brand X_ unreasonable, so maybe I'm the unreasonable one! :D
@Carahan
4 ай бұрын
7:45 California ban on non-competes dates back to 1872. It was originally an anti-union law that happened to affect non-compete agreements as well in California Business and Professions Code 16600. The anti-union effect has since been superseded by other California and federal law. Then the current interpretation of 16600 was added by law 16600(b)(1) of California Supreme Court decision Edwards v. Arthur Andersen LLP (2008). Yes, that Arthur Anderson from Enron, this decision came out of that collapse. Arthur Anderson had been requiring California employees to sign non-competes.
@mccaine1
4 ай бұрын
It seems a peculiarity of the US system, that the Legislature enacts laws, which the Executive must enforce, but of which Executive agencies cannot effectively query the Legislature regarding definitions or meaning. The only meaningful mechanism for enforcement is to set rules, and provide a vehicle through which the Judiciary may review the definitions for propriety under the greater umbrella of statute and the Constitution.
@HoegLaw
4 ай бұрын
They can inquire as to Congress, but the Act in itself was pre WWI.
@Carahan
4 ай бұрын
And pre-WW2 interstate commerce laws can be odd to figure out. This was before the modern interpretation of the interstate commerce clause. There's a bunch of laws that simply were written based on a different interpretation that was far more narrow including the National Banking Act of 1863 and the Federal Arbitration Act that had unexpected side effects on the country after Wickard.
@mccaine1
4 ай бұрын
@@HoegLaw What is the mechanism for getting clarification from Congress without proposing additional legislation? As I understand it, the only way to get an interpretation is for someone with standing to ask for judicial review.
@HoegLaw
4 ай бұрын
A formal one, but agencies and Congresspeople are constantly talking.
@mccaine1
4 ай бұрын
Cool, thanks!
@tracyg843
4 ай бұрын
Oh man. I missed it, should have put those notifications!
@HoegLaw
4 ай бұрын
Next time!
@catherinelynnfraser2001
4 ай бұрын
So many trial things going on but this is something that will affect employers and employees profoundly. I had to do the replay🖤 Thank you Rick
@kelljc
4 ай бұрын
The case with US Chamber of Commerce was paused last Friday in favor another case filed in federal court in Texas by Ryan, LLC (a tax advisory firm). There's also a challenge in Pennsylvania from small business tree trimming company.
@HoegLaw
4 ай бұрын
Thank you. I knew there were others, but am a bit surprised they let Ryan move in front.
@msvg3
4 ай бұрын
Sorry I missed the live, but so glad to see you covering this. I was in HR for years, and wondered about the overreach when I heard this news.
@cookiemonsteve
4 ай бұрын
Sad that I missed the live, but definitely like the fact that we can review later. Very much looking forward to long term impacts of this!
@kaleiohulee6693
4 ай бұрын
Non-competes seem to be anti-capitalist as they are fundamentally anti-competitive. Maybe concentrate institutional knowledge on employees who you have a long and good history together with. If unspecified knowledge getting out is fatal to your business model then maybe your business model isn't strong enough. NDAs seem to be sufficient legally for actual corporate secrets.
@rd-um4sp
4 ай бұрын
there is a version of Non-Competition that not only fair but I'd go further and say necessary. Do corporations use it that way? Of course not. It is another weapon to try and eliminate competition. It is cheaper, easier and faster than actually competing. And then there is the whole mess of FTC versus legislator versus supreme court. I wish it was only in your jurisdiction that had those problems. Legislators in my jurisdiction have the same problem that, any law that can create backlash, they try to delegate to someone else or make it so broad that it becomes a loophole hellscape. Here one of the recent discussion is the Supreme court legislating because legislators fails to do so. the main difference between my jurisdiction and the US is that we understand the concept of power imbalance between parties and even have legislation regarding that. What we miss is political willingness to enforce them. And widespread corruption.
@H.P.93
3 ай бұрын
I feel like it really depends on the non-compete. If they're specific enough, than maybe fine. But it's unfair if they make it so that someone who leaves a job, especially if they are part of a larger layoff, can't look for a job in their industry and run into issues getting money. And that's when they become an issue. They should prevent people from sharing info, but not from working in their field. And maybe there should be different rules for those who quit vs those laid off.
@Schnookism
3 ай бұрын
I don't understand the practical distinction Hoeg makes between a worker and a company. In the country I'm from it takes about 6 weeks for a government entity to process the registation form to create a company.
@Jay_The_Cat
4 ай бұрын
I'd be curious to know your take on the whole Andretti Global vs Formula One Management situation, if you're familiar with it? US Congress has now gotten involved with bi-partisan support, requesting an explanation from the commercial rights holder (Liberty Media) and Formula One Management regarding the rejection of Andretti's bid to join Formula One as a constructor.
@vawlkus
3 ай бұрын
the only play I see here is that the FTC wants to advance the notion that non-competes are overused to the detriment of workers. They may not get them banned, but they might get them scaled back a bit. Of course, that's a logical viewpoint, and I think we can agree that the FTC hasn't been to the school of logic recently.
@AnakinTheWeird
4 ай бұрын
The question is whether or not provisions that prevent competition are anticompetitive 🤔
@karibose
3 ай бұрын
I'm a hair stylist. I'd love to know how this is going to affect the beauty industry.
@bojohanconstantlyconfused1386
3 ай бұрын
Re: non competition should definitely apply to the janitors…want to know secrets, just ask them. If you threw the paper out, they know about it. Leave your screen on, they’ve looked at it. A mole never has a powerful position, too many eyes on them…
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