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By: Group 4
z
Non-Compete
Agreements are
positive…
(for business)
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What is it?
▪
Non-Compete agreements are clause
contracts that specify that an employee
cannot enter in competition with that firm
after the employment period.
▪
(These vary depending on state)
▪
This includes working for competitors of the
same market and or starting a business in
the same market.
▪
It gives business the power of a former
employee’s next work destination by limiting
the fields he or she can work for.
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Why it’s
positive for
Business?
▪
It gives business the power
to control the former
employee’s choice of work
post employment.
▪
It reduces the risk of
competition from potential
threats.
▪
Since the employees know
the ins and outs of your
business, this reduces
threats heavily!
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About NCAs
▪
Overall, they are uncommon with
only 18% of employees being
subject to a NCA within the last 2
years
▪
38% of employees have
said they have dealt with
a NCA throughout their working
career
▪
On average 70% of
companies that used
NCAs required employees to
sign them
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Why could it be bad?
▪
Noncompete agreements typically ▪
are worse for the employee
comparatively to the business
Only 11.4% of employees currently
are under noncompete
agreements
▪
This can stop employees from
▪
potentially searching for other jobs
or from even starting their own
businesses
▪
Overall, non-compete agreements
are bad for employees because of
the fact they can limit their wages
along with making it difficult to find
a job after the previous
The FTC estimates that by
banning NCAs from businesses
they can increase wages by
upwards of $300 billion per year
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WORKS CITED
▪
https://www.shrm.org/resourcesandtools/legal-and-compliance/employmentlaw/pages/states-restrictnoncompetes.aspx#:~:text=Eighteen%20percent%20of%20U.S.%20workers,Gove
rnment%20Accountability%20Office%20(GAO).
▪
https://www.gao.gov/products/gao-23-103785
▪
https://www.ftc.gov/news-events/news/press-releases/2023/01/ftc-proposes-ruleban-noncompete-clauses-which-hurt-workers-harm-competition
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