NonCompete to be Non-Existent
If you haven’t heard, the FTC made a bold move that aims to disrupt the employment landscape by ruling that non-competes will cease to exist going forward.
According to the final rule, existing non-competes for senior executives can remain valid, but employers are barred from initiating or enforcing new non-competes with senior executives. The rule defines senior executives as individuals earning over $151,164 annually in policy-making roles. You can find more details here: FTC Announcement
This change isn’t just about the perspectives of those in their 30s and 40s; it’s about Gen Z and the evolving nature of work.
For creatives in their 30s and 40s, it’s essentially a public declaration of independence from past employers, without fear of reprisal. It’s a departure from the private rebellion against former employers that some may have engaged in before the FTC ruling.
{ The copy above — I ran through ChatGPT to soften the edges of my original copy. Which I still love — so I’m including what I wrote before ChatGPT which was this:
If you are wondering what creatives in our 30’s or 40’s think about it- it’s basically a public middle finger to the last employer, without recourse. As opposed to what some might have been doing before the FTC ruling…which was a private middle finger to the last employer. } Fun with LLM’s! But I digress.
In my field, many creatives juggle freelance work with full-time creative jobs. Simply put, it allows the freedom to pursue one’s passion without the looming threat of legal action for collaborating with competitors.
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Opinions on this ruling abound, and here’s mine:
While this rule might not sit well with bosses who want to retain their top talent and prevent them from jumping ship, the truth remains: if employees aren’t treated with respect, honesty, and their contributions aren’t valued, they will leave. Employers shouldn’t have the right to stifle creative opportunities simply because the grass might be greener on the other side.
I’ve come across William Loyd Garrison’s article, and while it offers some insight, the situation isn’t as straightforward as “if you don’t want to sign a non-compete, then don’t take the job.” Link to article here.
Non-competes used to be ubiquitous, but, sorry Mr. Garrison, most of us, like the majority, have bills to pay. While I agree with some points, such as the importance of standing up for oneself, it’s also crucial to be realistic. Not everyone can afford to turn down job opportunities, even if they involve competitors.
Some articles argue against abolishing non-competes with hypothetical scenarios, but they’re just that — hypotheticals.
CONFIDENTIALITY + INTELLECTUAL PROPERTY
It’s important to note that removing non-competes doesn’t nullify agreements regarding intellectual property or confidentiality. In essence, it boils down to being responsible and ethical. Don’t divulge company secrets or share files when you move to another company.
As my close friend and mentor always says, “Make good choices.”
