Forced non-compete agreements should be illegal

https://lemmy.world/post/5803260

Forced non-compete agreements should be illegal - Lemmy.world

Morale at work has been super low for the past few years, ever since the CEO/President bragged about how well they did in 2021 “record profits, over and beyond anything we ever expected” and 2022 “we barely made more than we did last year”, but none of that success trickled down to the people responsible for that success. I’m surrounded by people actively looking for work elsewhere. So, to keep people from quitting, the company forced everyone to sign the agreement in the Imgur link [https://imgur.com/a/o6bnxVd] I’ve attached. Of course it gives all power to the company, and of course we had to sign it under penalty of losing our jobs immediately. This of course is in addition to Top Management blaming the Bottom Management for the morale issue, and rebranding poor morale as an “engagement issue”. They’re also forcing the workers to come up with solutions for the “engagement issue”, going so far as to put it on our annual reviews. Part of our “goals for the upcoming year” is to deal with “low engagement”. That’s right, if we don’t come up with solutions for our own morale problem, it will look poorly on our reviews. I have worked for some brain-dead companies before, but I’ve never seen such myopia in Leadership. At least previously I knew I was getting fucked on purpose. Right now I’m not sure if it’s an accident.

In several countries they are outright illegal unless the person is paid for the non-compete period.

In the US, however…

From what I’ve read and been presented as long as you can prove they stop you from being gainfully employed they are barely worth the paper printed on. I could be very wrong though.
In any " At Will" state. A few states might have some ridiculous shit going on.
California for the most part considers these illegal agreements.

That’s a very different and far less employee friendly situation.

In your case an ex-employee can still be stopped from taking certain better paying jobs (because he or she can still find gainful employment, though for less) all the while the ex-employer pays nothing for limiting the freedom of that person, plus the onus of proof if fighting the non-compete is on the ex-employee, not on the ex-employer.

Meanwhile in those other countries the ex-employee has to pay the ex-employer for the non-compete (and if it’s taken to court prove it) or it simply gets thrown out, no need for the ex-employer to prove anything.

Your is not a good and fair situation because an entity can still leverage its position of power to obtain benefits (quite possibly very significant ones) from a person after the period of a contract is over without having to pay for it, it’s simply not as extremelly bad as becoming unable to feed yourself (by not being able to find “gainful employment”). Sure you’re not completelly totally fucked, just very fucked.

That’s not at all comparable with the situation were by law they have to pay an ex-employee for it and it has to be set in stone contractually from the start (i.e. if they don’t used it it’s their problem).

Where are you getting all this. The employee doesn’t have to do anything. The employer would have to sue them for breach, at the employers cost. You present it like a no cost to the employer thing. Of course never sign one of these anyway. They can’t fire you instantly for it. Tell them your lawyer will read it and you will get back to them. Should buy you a week or two to look for a new job.

The now cost for the employer thing is if by the employee refraining from taking certain offers after they leave because they’re concerned about the costs of being sued and the possibility of losing the case because they could have found “gainful employment” (just not that specific case).

The mere risk of being sued and losing the case leads the ex-employer to refrain from taking certain jobs, providing the ex-employee with benefits at now cost.

When the law is crystal clear that non-competes are only valid if paid for, there is no such threat hanging over the ex-employee (as not only would the ex-employer see its case summary thrown out if they took it to court, they would actually pay all the legal costs of the ex-employee) hence the ex-employee has zero pressure in their choice of future employeers.

It’s the difference between a non-compete being a genuine risk for an ex-employee if broken versus being no risk whatsoever (literally worth less than the paper its written on).

That said I totally agree that when one is in a position to do so (which by now I personally am), just refuse to sign the non-compete.

(Mind you, I was once pushed to sign one with an “or else we will withdraw our job offer” threat and I pretty much started looking for another job then, without them even having an hint that was going on, taking my time and being chosy, and 11 months later, after having become pretty essential to the team, I had something much better and just dumped them with a “You chose to make it an adversarial relationship from the start, so now I don’t really care about what my leaving with the minimum notice will do to your projects”. Funny enough I later found that in this country non-competes were worthless if not paid, so all that shit they pulled was ultimatelly a net loss for them).