Non-Competes Said To Cripple Prospects For Workers

Non-compete agreements are becoming more widespread and being imposed on a wider range of occupational categories, from sales and technical to manual labor, according to an article in the New York Times. Citing experts, and a number of case histories, the article makes the case the trend is part of a wider attack on the bargaining power of employees and that it affects even workers who don’t attempt to find a new job. “People can’t negotiate when their company knows they won’t leave,” said one economics professor. Studies are said to show that in states that allow non-competes, wages are lower and there is diminished “entrepreneurship.” California, and Silicon Valley in particular, is often cited by those who argue against non-compete agreements. They are prohibited in California and although, as the article says, that can be “brutal for employers,” many argue it promotes a free-wheeling culture of startups and the occasional spectacular business success. But companies make the point that knowledge and “data” have become increasingly important in the competitive marketplace, and that non-compete agreements are a necessary protection for assets that are the shank or their business. “When a person takes a trade secret and walks across the street to another company, how am I going to know that?” said the general counsel of an agriculture technology company.