TechCrunch Minute: FTC bans noncompetes, court challenge incoming
The Federal Trade Commission voted 3-2 this week to ban noncompete agreements. While the FTC estimates that nearly one in five American workers is subject to a noncompete, these agreements haven’t been a huge issue in Silicon Valley, because they’re not enforceable in California. This has arguably been one of the region’s competitive advantages, as it allows employees to start something new without worrying (in most cases) that they’ll have to spend the next few years battling their old employer in court.
Source: yahoo.com
