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For example, the sandwich chain Jimmy John’s previously came under scrutiny for forcing its low-wage workers to sign noncompete agreements that prevented them from working for a nearby business for two years after they left.
Jesus, they basically want slavery. They want workers to be completely dependent on them to the point that you legally can't go work at a different sandwich shop. I've only eaten there once and it was mediocre, but I'll never step foot in there again. What the fuck.
Why the fuck do they even need a non-compete clause for a sandwich shop? Are they worried people are going to reveal their secret Jimmy Johns technique for putting salami on bread to Subway?
The myth of the non-skilled worker isn't working in their favor here.
It's legal for them to do so, and if employees can't go to a competitor, it has the effect of depressing wages.
Non-compete clauses make sense for certain higher level employees (and usually involve some sort of garden leave payment too) but corporate America has started to slip all sorts of bullshit into standard employment contracts just because they can.
I don't even think it makes sense for them anymore. You either retain them with pay and job satisfaction or not. This idea that corporations can own experience is bullshit.
Kinda like the whole Disney artist thing.
Any character you create while working for Disney is Disney property. Even if it was a quick sketch done on a napkin. Even if the character doesn't even have a name.
I mean you joke, but that actually happened by me lol
There is a hero shop that is well known for specific heros they make that are really good, so after they fired a guy who worked there for years and years he opened his own shop and took all their recipes plus added pizza. (He also hired someone to make pizza and then fired him after he learned how to do it. He's just a scumbag lol)
Fun fact, there are franchise owners for all the big names that do this. McDonald's, Pizza Hut, etc. It's not usually a corporate decision.
Related, there are chains that won't hire from each other. They maintain a gray list of previous employees and you can only get hired back at your original location.
Ah yes, workers might take those precious trade secrets of (checks notes) how to make a sandwich.
Not slavery, serfdom.
Which is technically better then slavery for the serfs, but conveniently is also significantly cheaper for the landed gentry/capital class as they don't have to feed or house their serfs.
Why do these companies never get it? You want to retain talent… you gotta pay to retain that talent.
More accurately, you want your experienced and proprietary-knowledge-laden people to not take that stuff elsewhere…. Gotta pay them what they’re worth.
Can’t keep lowballing the pay raises, and expect people to not shop around,
He who lives by the free market shall die by the free market
He who lives by the free market will manipulate the free market to his advantage at the first opportunity to not have to actually live by the free market.
That's the thing though. They don't want to best talent. That is the point. You have to pay for talent. Talent tends to rock the boat and has the power to spark change because the company becomes reliant on them.
Most companies are completely fine paying much less for mediocre workers who will keep their head down and deliver a mediocre product where the execs get a way better profit margin and can perpetuate toxic systems.
Cute how she's being likely being paid under the table by some lobbyists that benefits from said non-compete agreements. And even if not under the table, it's likely under the form of campain contributions, etc. Politics and capitalism mixed together brings the worst in both.
Nobody in their right mind would elect to veto something giving more rights to the working class without having some personal interests on the line.
You picked the wrong side, Governor.
Why can't they retain top talent by paying them more?
But how would that benefit the shareholders? You're not thinking like a true capitalist!
And this is one of the reasons top tech talent stays in Silicon Valley / San Francisco, and why that area innovates so quickly.
If your company sucks, I’ll work for your competitor.
It's also why wages are so high. You wanna keep your talent? You gotta pay more than the company next door, or have better perks to make up for the wage disparity.
I got poached from AWS because my current team has a full AWS stack, and they wanted someone who knew it inside and out. They offered me a full remote position (whole company is full remote) with a higher salary, but slightly less TC. My new job is also way less stressful and with way more freedom.
How are contracts like this enforceable in the US? Like here you could have a clause like that but the moment you try to sue someone for working at a competitor the judge would just laugh at you and throw your ass out of court. You can't have just anything in a contract, just like if a contract breaks employment laws then it's not valid.
Most contracts have a severability clause saying if any clause is unenforceable then that clause shall be severed, but the rest stands. This lets companies take some big swings with what they put in there.
It takes time and money and stress for a worker to challenge any terms regardless of their merit. So an invalid contract still keeps you down, just not as strongly as the invalid contract itself claims to be.
They are rarely enforced and when they are it is usually due to some sort of significant financial loss the company suffered. Normally a company is not going to waste time and money taking a cook or cashier to court over quitting a job at McDonald's then going to work Burger King. But a senior software engineer working at Google going to work for Apple could have some real financial implications, so they'd be more likely to pursue legal action against that person. Still kinda bullshit in my mind but I get it.
Yeah but California has already banned non-competes, has for years, and Google and Apple seem to be doing just fine with the financial implications.
Also non-competes are different from NDAs.
There's still protections. Apple just got rocked for stealing the entire dev team from somewhere and just wholesale copying the code. Which is on Apple, not the worker. They could absolutely have taken them for an adjacent project (it was sensors in smart watches) using the same sensors. Or paid a licensing agreement for what was there with a right to improve it.
But a senior software engineer working at Google going to work for Apple could have some real financial implications
No, unless you mean something quite different than that title. A large company will have hundreds or even thousands of senior software engineers, and it’s really not something that should be restricted with non-competes
To be valid, a non-compete should:
They don't have to actually enforce it, they just have to scare you with it. Or better yet, convince you they could enforce it
legitimately trying to retain top talent
"Trying to figure out how to pay their talent less"
Thank god for states with half a brain. Non-competes are illegal in my state and not enforceable.
In my country non-compete laws are extremely rational: if you want to enforce such a contract, pay the person what he could make at a competitor during the entire duration you want to prevent him from going to the competition.
It's not up to the State to pay unemployment for people because you don't want talent to go somewhere else. Pay up or STFU.
Idiot employers will still put silly non-compete clauses into their contracts to scare people but I just chuckle as they are unenforceable unless they want to pay me to stay "on the beach".
Related. My previous employer had a b2b non-compete. The clients couldn't hire me. Yes it did end up costing me a job and a lawyer told me it would be very dicey challenging it the way it was written. On the plus side the client went bankrupt a few months back so that would have sucked.
Any chance of overturning the veto?
From this photo, this woman looks like the baddie from Men In Black 2.
Asshole.
Hope they have votes to overrule her veto.
The funny thing is then the rich companies spends millions on lawyers to say that poached employee's stuff was common knowledge and thereby not an NDA issue or trade secret.
You turn around and say I'm leaving but will say the same stuff that person said to the next employer and they'll sue with the same lawyers.
"It's ok if I do it but not if they do it"
Aren't non competes generally very difficult to enforce? The people I've known that have gotten in trouble with non compete agreements are those in management positions that engaged in very active poaching of their old teams within a specified time frame.
Also, given the nature of remote work and hiring, I kind of have a mixed feeling. What does this kind of state regulation in a VHO/WFH environment do to NY workers in a job market with flexible location? These regulations really should be at the federal level.