Federal regulators on Tuesday [April 23, 2024] enacted a nationwide ban on new noncompete agreements, which keep millions of Americans — from minimum-wage earners to CEOs — from switching jobs within their industries.
The Federal Trade Commission on Tuesday afternoon voted 3-to-2 to approve the new rule, which will ban noncompetes for all workers when the regulations take effect in 120 days [So, the ban starts in early September, 2024!]. For senior executives, existing noncompetes can remain in force. For all other employees, existing noncompetes are not enforceable.
[That's right: if you're currently under a noncompete agreement, it's completely invalid as of September 2024! You're free!!]
The antitrust and consumer protection agency heard from thousands of people who said they had been harmed by noncompetes, illustrating how the agreements are "robbing people of their economic liberty," FTC Chair Lina Khan said.
The FTC commissioners voted along party lines, with its two Republicans arguing the agency lacked the jurisdiction to enact the rule and that such moves should be made in Congress...
Why it matters
The new rule could impact tens of millions of workers, said Heidi Shierholz, a labor economist and president of the Economic Policy Institute, a left-leaning think tank.
"For nonunion workers, the only leverage they have is their ability to quit their job," Shierholz told CBS MoneyWatch. "Noncompetes don't just stop you from taking a job — they stop you from starting your own business."
Since proposing the new rule, the FTC has received more than 26,000 public comments on the regulations. The final rule adopted "would generally prevent most employers from using noncompete clauses," the FTC said in a statement.
The agency's action comes more than two years after President Biden directed the agency to "curtail the unfair use" of noncompetes, under which employees effectively sign away future work opportunities in their industry as a condition of keeping their current job. The president's executive order urged the FTC to target such labor restrictions and others that improperly constrain employees from seeking work.
"The freedom to change jobs is core to economic liberty and to a competitive, thriving economy," Khan said in a statement making the case for axing noncompetes. "Noncompetes block workers from freely switching jobs, depriving them of higher wages and better working conditions, and depriving businesses of a talent pool that they need to build and expand."
Real-life consequences
In laying out its rationale for banishing noncompetes from the labor landscape, the FTC offered real-life examples of how the agreements can hurt workers.
In one case, a single father earned about $11 an hour as a security guard for a Florida firm, but resigned a few weeks after taking the job when his child care fell through. Months later, he took a job as a security guard at a bank, making nearly $15 an hour. But the bank terminated his employment after receiving a letter from the man's prior employer stating he had signed a two-year noncompete.
In another example, a factory manager at a textile company saw his paycheck dry up after the 2008 financial crisis. A rival textile company offered him a better job and a big raise, but his noncompete blocked him from taking it, according to the FTC. A subsequent legal battle took three years, wiping out his savings.
-via CBS Moneywatch, April 24, 2024
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Note:
A lot of people think that noncompete agreements are only a white-collar issue, but they absolutely affect blue-collar workers too, as you can see from the security guard anecdote.
In fact, one in six food and service workers are bound by noncompete agreements. That's right - one in six food workers can't leave Burger King to work for Wendy's [hypothetical example], in the name of "trade secrets." (x, x, x)
Noncompete agreements also restrict workers in industries from tech and video games to neighborhood yoga studios. "The White House estimates that tens of millions of workers are subject to noncompete agreements, even in states like California where they're banned." (x, x, x)
The FTC estimates that the ban will lead to "the creation of 8,500 new businesses annually, an average annual pay increase of $524 for workers, lower health care costs, and as many as 29,000 more patents each year for the next decade." (x)
Clearer explanation of noncompete agreements below the cut.
Noncompete agreements can restrict workers from leaving for a better job or starting their own business.
Noncompetes often effectively coerce workers into staying in jobs they want to leave, and even force them to leave a profession or relocate.
Noncompetes can prevent workers from accepting higher-paying jobs, and even curtail the pay of workers not subject to them directly.
Of the more than 26,000 comments received by the FTC, more than 25,000 supported banning noncompetes.
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Ya know, Timmy deliberately making it harder for a kis to become a Fairy, so they wouldn't have to deal with that burden
It can make for a interesting story. Especially if Dev ever found out, I think he'd be angry at Timmy and think of him as selfish. And since this is Dev, he might even accuse others like Hazel, Wanda, Cosmos, and of course Peri, to all being against him. To Dev, they don't actually care about him, just his wishes. Even if Timmy isn't an antagonist, to Dev he could be no different from one.
It would make for an interesting story! Although, realistically, Dev wouldn't care much for becoming a fairy. It won't solve his problems of wish granting or the fact that what he actually wants is the attention of his father. Being a fairy ain't fixing that.
It is a nice thought experiment though.
Bitties Series: [Start] > [Previous] > [Next]
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so like. at what point are we going to stop listening to game companies saying "the game was poorly received and didn't meet our sales targets, and that's why we're removing it from storefronts and taking down all the servers mere months or even weeks after release" for titles that had a long expensive development, were barely marketed, and nobody knew they'd even released until after they heard they were getting shut down and couldn't be played/purchased anymore?
I feel like the prevailing takeaway for anyone who doesn't just conclude "yeah, game was pretty mid, makes sense to me" has usually been "this company just has unreasonably impossible sales expectations and treats every project like a failure if it doesn't print a trillion dollars". but these ARE allegedly experienced business execs who aren't complete idiots, and after this most recent debacle with Concord I'm starting to wonder if a bunch of these "games getting wiped out of existence when they underperform instead of just being allowed to persist as they are and maybe improve with time" cases in recent years might be more of a Warner-Discovery type situation, like nuking an entire animated series or film that was worked on for years and preventing it from being sold because it has to be officially unprofitable for the company to use it as a tax write-off. I look at a game that was worked on for 8 years and only made available for 2 weeks, and it's hard not to see the parallels.
great work, AAA games industry, really normal and sustainable stuff you're doing over there as usual
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Since its been mostly Dreamswap content, i want to mix it up.
This is my own universe, its not exactly undertale related but it used to be. Its called 'Dreamsleep: Dreams Forbidden'. A story i'e been working on for over four years now, this January will be the fifth.
I know people would prefer and like the dreamswap content more, but i will mix it up. Its been rare that i've even drawn my dreamsleep characters
The two characters in this are called 'Klaus' 'nd 'Malifunction/Mal'. Klaus is the red hair and Malifunction is the dark blue and black hair.
I hope people like this content as much as the Dreamswap, but its likely people would prefer it. I just wanted to make it known.
P.S, Mal and Klaus are together
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