Historically, tech companies have favored using non-competes, which has led to fierce battles in the industry.[3]<\/a> Big tech companies like IBM, Microsoft, Amazon, and Google have aggressively tried to enforce non-competes against former employees in court.[4]<\/a> These companies and other proponents are for non-competes because the agreements serve to protect their business interests.[5]<\/a><\/p>\n In Washington, New York, and other states where non-compete agreements are legal, some tech companies utilize these agreements to ensure that former employees don\u2019t spill their trade secrets.[6]<\/a> Companies also have an incentive to implement these agreements because it\u2019s an industry standard \u2013 competitors will almost certainly utilize these agreements.[7]<\/a><\/p>\n On the other hand, the enforcement of non-competes is illegal in states like California. Therefore, it\u2019s easier for former employees to take trade secrets to other companies or to form start-ups in those states.[8]<\/a> But some argue that process has also led to innovation, which could be the reason that Silicon Valley became \u201cthe world\u2019s tech Mecca\u201d.[9]<\/a> Indeed, opponents of non-competes say that the agreements \u201cstifle innovation and hinder startup activity.\u201d[10]<\/a><\/p>\n Additionally, non-competes can keep employees in less-than-ideal employment situations.[11]<\/a> For example, an Amazon worker claimed that her non-compete agreement \u201ckept her in an abusive and harmful environment\u201d, subjecting her to harassment and discrimination.[12]<\/a> Non-competes have a lock-in effect, which can prevent workers from leaving toxic workplaces.[13]<\/a> The employee\u2019s choices are to either stay in such an environment or to try their hand at a new career, shadowed by the terms of the non-compete.[14]<\/a><\/p>\n Another reason opponents argue against non-compete agreements is that their use discourages innovative prospects by refusing to see a potential employee\u2019s perspective \u2013 \u201c[i]mposing limits on innovators won\u2019t entice them, it will send them searching for greener pastures.\u201d[15]<\/a> Similarly, an employee who understands that their future job prospects are limited due to a non-compete agreement may feel uneasy, unmotivated, or unhappy \u2013 possibly even \u201cfearful of the consequences should they choose to leave.\u201d[16]<\/a> Disgruntled employees may turn to social media to vent, or to their friends and family \u2013 either way, a bad reputation is hard for even a big tech company to overcome.[17]<\/a><\/p>\n Opponents also argue that companies don\u2019t need to utilize a non-compete to protect their trade secrets.[18]<\/a> Companies could obtain such protection through non-disclosure agreements, confidentiality agreements, and the Trade Secrets Protections Act.[19]<\/a><\/p>\n President Biden is an opponent of non-compete agreements, which has led to speculation that 2022 may be the year that federal restrictions are implemented.[20]<\/a> Last year, President Biden issued an executive order that specifically asked the FTC to consider restricting non-competes.[21]<\/a> However, federal courts have historically frowned upon federal agencies exerting powers like those proposed by President Biden\u2019s order.[22]<\/a><\/p>\n <\/p>\n [1]<\/a> Brad Stone, Biden Executive Order on Non-Competes Could Roil Tech<\/em>, Bloomberg (July 12, 2021, 6:45 A.M.), https:\/\/www.bloomberg.com\/news\/newsletters\/2021-07-12\/biden-executive-order-on-non-competes-could-roil-tech.<\/p>\n [2]<\/a> Megan Rose Dickey, Tech\u2019s Non-compete Agreements Hurt Workers and Anger Some Lawmakers<\/em>, Protocol (May 13, 2021), https:\/\/www.protocol.com\/policy\/tech-non-compete.<\/p>\n [3]<\/a> Stone, supra<\/em> note 1.<\/p>\n [4]<\/a> Id.<\/em><\/p>\n [5]<\/a> 4 IT Legal Issues You Need to Pay Attention to Now<\/em>, Tul. Univ. SoPa Blog, https:\/\/sopa.tulane.edu\/blog\/it-legal-issues-need-attention.<\/p>\n [6]<\/a> Dickey, supra<\/em> note 2.<\/p>\n [7]<\/a> Id.<\/em><\/p>\n [8]<\/a> Stone, supra<\/em> note 1; Dickey, supra<\/em> note 2.<\/p>\n [9]<\/a> Stone, supra<\/em> note 1.<\/p>\n [10]<\/a> 4 IT Legal Issues You Need to Pay Attention to Now<\/em>, supra<\/em> note 5.<\/p>\n [11]<\/a> Dickey, supra<\/em> note 2.<\/p>\n [12]<\/a> Id.<\/em><\/p>\n [13]<\/a> Id.<\/em><\/p>\n [14]<\/a> Id.<\/em><\/p>\n [15]<\/a> Katy Imhoff, Why Tech Companies Should Avoid Non-Compete Agreements<\/em>, Camden Kelly, https:\/\/camdenkelly.com\/why-tech-companies-should-steer-clear-of-non-compete-agreements\/.<\/p>\n [16]<\/a> Id.<\/em><\/p>\n [17]<\/a> Id.<\/em><\/p>\n [18]<\/a> Dickey, supra<\/em> note 2.<\/p>\n [19]<\/a> Id.<\/em><\/p>\n [20]<\/a> Kristen Senz, How Eliminating Non-Competes Could Reshape Tech<\/em>, Harv. Bus. Sch.: Working Knowledge (Jan. 18, 2022), https:\/\/hbswk.hbs.edu\/item\/how-the-end-of-noncompetes-could-reshape-tech.<\/p>\n [21]<\/a> Id.<\/em><\/p>\n
![\"\"](\"https:\/\/jolt.richmond.edu\/files\/2022\/02\/Non-Compete-Photo-300x144.jpg\")
<\/p>\n