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FTC is full steam ahead on sweeping noncompete ban, reinforcing antitrust, agency head tells docs

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Healthcare lobbying organizations’ efforts to carve out industry-specific exemptions in recently proposed Federal Trade Commission (FTC) policies are unlikely to see their...



These efforts included January’s proposed ban on noncompete agreements, new merger and acquisition guidance for antitrust enforcement, at least three cases of successful litigation to block noncompetitive health system mergers and last month’s lawsuit targeting a private equity firm’s alleged “roll-up scheme” in the Texas anesthesia market.



“We’re looking at all those comments very closely and figuring out where to land,” she said. “But I'll be honest, the overwhelming number of comments are firmly in support of the FTC proposal to ban noncompetes across the board. And so, we take that very seriously.”

This would be so so so good.

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I like how they say the truth right out there. It's not about keeping company information protected, it's a stick to keep employees retained rather than give them a carrot like good pay, good benefits, or just treating them well.


Honestly the practice is a lot of keeping up with your competitors. You can't be the only company in your sector to not do it. However, I think non-competes are cheap ways to keep your staff for the bad companies. For good companies, their pool of potential candidates for open roles can balloon. Hopefully the FTC frames it up as anti- competitive and anti-capitalism, because it is. 


Long term, it's good for companies, industry, and employees. Only one it's bad for is shady companies.

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Governor Gavin Newsom recently signed Senate Bill 699 and Assembly Bill 1076 into law. Both laws concern how employers contractually block workers from joining a competitor business, sometimes for many months after employment ends, and both will go into effect on Jan. 1, 2024


SB 699 makes it illegal for an employer or former employer in California to enforce a noncompete clause even if the contract was signed in another state and if the employee works outside of California. California has long made it illegal to restrain employees and independent contractors in California from engaging in a lawful profession, but SB 699 effectively extends that prohibition across the country. SB 699 also supplies enforcement rights to employees who believe they have been wronged to demand monetary damages and other remedies.

AB 1076 obligates employers to notify current employees and former employees who were employed after Jan. 1, 2022, that any noncompetes in a contract void unless an exemption applies. The exemptions are narrowly defined and concern dissolution of corporations, partnerships and limited liability corporations.

For California companies with employees who work remotely in other states, these changes will render noncompetes not only unenforceable but also grounds for liability.



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