RIP Non-Competes
My Take:
California's economic strength has many roots, but one key factor is its stance against non-compete agreements. With very few exceptions, it has been unlawful for employers to enforce non-competes in California since 1872. Last week, the FTC banned non-competes nationally. While a lot of business leaders are freaking out, I'd like to welcome you all to the party -- even if you did get dragged here against your will and show up 152 years later.
From a moral standpoint, banning non-competes nationally is obviously the right thing to do. Employees have families and financial needs. Limiting their career mobility through non-competes is rapacious corporate behavior. It's time to move away from a system that mimics indentured servitude and embrace one that empowers workers.
But it's not just about fairness. There's a strong economic argument, too. Non-compete agreements stifle innovation and economic throughput, particularly in the knowledge economy. A free flow of talent fosters a more dynamic and productive market for all participants.
But look, I get why so many business leaders are panicked. It's painful to invest time and energy in training an employee only to see them poached by a competitor. There is no way around that – but the solution is not to use your asymmetrical power as employer to force your employees to continue working for you or else go hungry. The solution is to create a compelling work environment -- one with strong compensation and intellectual nourishment and professional development for all your employees. It's not neuroscience. When employees feel like they're getting a great deal where they're at, they'll stay. And the ones who leave for a few extra nickels weren't long-term contributors who were going to move the needle for your business in any case.
Learn. Do better. And always remember that the free market can only truly work when it flows in all directions. Ending non-compete agreements is a step towards a more vibrant and equitable economy for all.
🕸️ Around The Web 🕸️
Even as He Faces Prison Time, Binance’s Founder Plans a Comeback by David Yaffe-Bellany and Cade Metz VIA NYTimes
Look, there’s a reason CZ made my list of Tech’s Biggest Assholios of 2023. The dude gets a four month prison sentence and is already planning more shenanigans. Letters to the judge ahead of sentencing were a who’s who of the crypto world — almost exclusively arguing for leniency. Make it make sense.
Scraping is almost always illegal, clarifies Dutch Data Protection Authority
News to watch here. The Dutch Data Protection Authority made its interpretation pretty clear: “Scraping will almost always be a violation of the General Data Protection Regulation (GDPR).”
American Innovation is Being Hamstrung by our Broken Immigration System by Vivek Vaidya
The U.S. has all-time-high of more than 1.8 million people waiting for employment-based green cards, over half of whom have advanced degrees.
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