Why Non-Compete Agreements Should Be Eliminated
The coronavirus pandemic has left tens of millions of Americans out of work. To try to get people back into the workforce, it’s imperative that we do things that promote fairness and equality in the workplace. This is especially true as the country deals with racism and other social issues.
One way to do this is to eliminate non-compete agreements. These documents were once used solely by technology companies looking to keep employees from jumping around from one company to another and stealing proprietary information along the way. Now, many industries use these agreements to restrict employees from working elsewhere.
Media companies use them to keep TV anchors exclusive. Some companies use them for salespeople. Sometimes they are used by hospitals and medical clinics to keep good doctors from moving. They are used in blue-collar fields like construction. Salons use non-compete agreements to keep hairdressers from accepting employment elsewhere. They are even used in traditionally low-paying industries. Fast-food restaurants are using these documents to keep their best workers from leaving.
Business owners use non-compete agreements because they want to exert control over their employees and prevent them from working for competitors. After all, good employees are hard to come by. However, these agreements are designed to benefit solely businesses. Employees get no benefit from them. Instead, they are left stuck at a company they may not like doing a job they hate. This causes them to get stalled in their career, unable to move on and earn more money and promotions. In fact, as many as 40% of workers have had to turn down job opportunities due to a non-compete agreement in place by an employer.
Non-compete agreements are often very restrictive, as they include time and geographic limitations. As for time limitations, they may prohibit an employee from working for a competitor for a long period, such as one year or longer. Location-wise, such a document could restrict an employee from working for a company within a large radius (typically 50-100 miles). This can be frustrating for those who live in rural areas or have few jobs nearby. For those who don’t want to commute, they may be forced to move in order to pursue a better job opportunity.
Businesses need to strive to be pro-worker. Being selfish is not the way to succeed as a company. With non-competes in place, people are discouraged from taking risks. They are unable to provide additional value to their communities and industries. Many states have taken action to ban these agreements, but most states do still allow them.
Learn More About Non-Compete Agreements
Things are difficult for Americans right now. Many want to work but can’t due to limitations like non-compete agreements. They don’t want to face legal action from an angry employer.
If you’re a company looking to hire new employees, Orlando non-compete agreement lawyer B.F. Godfrey from Godfrey Legal can determine if a non-compete agreement is right for you. He can help you with all the details. Schedule a consultation today by filling out the online form or calling (407) 890-0023.