https://finance.yahoo.com/news/ftcs-noncompete-ban-could-reshape-the-us-workplace-140012480.html
6 replies (most recent on top)
Our leader eluded that we are still on responsible growth path and doesn’t look like we can fill open positions. In fact he said, it will be the exact opposite. Hmmmm. I agree that they will also continue with some kind of severance.
I don’t think there will be wide ranging impacts.
“ Not all industries will be subject to the rule, however. Some banks, certain nonprofits such as healthcare providers, and stockyards will not have to comply.
On Wall Street, that could mean traditional banks might be able to maintain more control over departing workers than, say, private equity firms or hedge funds.”
noncompete is not the same as notice period.... so you will have to give a 60 days notice and either keep working or not but get paid. noncompete is a separate consideration.
Reputational risk. I would be surprised if companies stopped paying serverance just because of the non-compete law.
Not sure
"Not all industries will be subject to the rule, however. Some banks, certain nonprofits such as health care providers and stockyards will not have to comply."
"On Wall Street that could mean traditional banks might be able to maintain more control over departing workers than, say, private equity firms or hedge funds."
Should the bank choose to not provide severance and laid people off, it would be ugly PR wise. Dumping people without severance provided in the past would be met with some negative perception. Affected people would most likely go scorched earth on social media. I'd make sure my senators and representative knew what happened.
Is that enough of a deterrent? No so sure.
Any company who has the gall to lay off employees and try to enforce a non-compete should not be in business. Severance is a mere pittance to destroy someone's livelihood. If a company lays you off, go out there with a vengeance and take their clients and ruin that company. Should be motivation enough to succeed in your next job. You should dictate your next move. Don't let them do it for you.