Showing posts with label at will workers. Show all posts
Showing posts with label at will workers. Show all posts

Wednesday, January 18, 2023

FTC prepares to ban ‘noncompete agreements’ – what they are and why low-wage workers are increasingly required to sign them

  Most American workers are hired “at will:” Employers owe their employees nothing in the relationship except earned wages, and employees are at liberty to quit at their option. As the rule is generally stated, either party may terminate the arrangement at any time for a good or bad reason or none at all.

  In keeping with that no-strings-attached spirit, employees may move on as they see fit – as record numbers have done during the “great resignation” – unless, that is, they happen to be among the tens of millions of workers bound by a contract that explicitly forbids getting hired by a competitor. These “noncompete clauses” may make sense for CEOs and other top executives who possess trade secrets but may seem nonsensical when they are applied to low-wage workers such as draftsmen in the construction industry. A 2019 business survey found that 29% of companies paying an average wage of less than US$13 an hour required all their employees to sign noncompete agreements.

Sunday, July 18, 2021

Biden targets noncompete agreements, which restrict the job opportunities of millions of low-wage workers

  Most American workers are hired “at will”: Employers owe their employees nothing in the relationship except earned wages, and employees are at liberty to quit at their option. As the rule is generally stated, either party may terminate the arrangement at any time for a good or bad reason, or none at all.

  In keeping with that no-strings-attached spirit, employees may move on as they see fit – unless they happen to be among the tens of millions of workers bound by a contract that explicitly forbids getting hired by a competitor. These “noncompete clauses” may make sense for CEOs and other top executives who possess trade secrets but may seem nonsensical when they are applied to low-wage workers such as draftsmen in the construction industry. A 2019 business survey found that 29% of companies paying an average wage of less than $13 an hour required all their employees to sign noncompete agreements.