Non Competitive Clauses
Horacio Ochoa
Law-480
Midterm
Non-compete clauses and its effects
The idea of a non-compete clause came from companies and corporations wanting to keep their intellectual property secret from their competition, whether it from for a short period of time to a long time. Every state has their own enforcement of the clause but the general rule is that the longer the time period is the less likely it will be enforced by the court. The main issues with non-compete clauses and how their expansion into the newer job fields has greatly impacted the economy and the employees of the occupations. The clauses are usually to varied in the sense that there isn’t a minimum or maximum amount of time that can be applied, another thing is that the clause …show more content…
Workers that have signed non-compete clause when they started their job are less likely to change their current employment, especially when the skills they posses are less transferal in other industries and firms. Usually when workers attempt to change their jobs, they will change their field entirely, or even refrain from working for the duration that the clause last, for fear of violating the terms highlighted in a non-compete clause. But when a worker chose not to honor the non-compete clause usually do it by seeking protection from lawsuits by joining a larger firm. This creates the gap in innovative activities and entrepreneurial ventures that would arise faster if the non-compete clause wasn’t their, economic growth can be measured in many ways and one of these ways is the amount of entrepreneurial ventures are happening along with how much innovation is happening. Along with that since our economy does allow the government to interfere to regulate aspects that greatly effect our economy we could implement regulations on free employment, and provide restrictions on the clauses that harm the economy. We can see this in effect with the eminent domain clause which allows the government to enforce regulations and end bad practices by companies and other economic entities when dealing with interstate commerce and it is possible to argue that by restricting free worker flow it might fall under interstate commerce because it restricts the flow of ideas and innovation throughout the country. The focus the government should have should be on intervening when companies are being socially irresponsible abusing the non-compete clause, by limiting the non-compete clause the country as a whole will improve. This in turn effects the US
Law-480
Midterm
Non-compete clauses and its effects
The idea of a non-compete clause came from companies and corporations wanting to keep their intellectual property secret from their competition, whether it from for a short period of time to a long time. Every state has their own enforcement of the clause but the general rule is that the longer the time period is the less likely it will be enforced by the court. The main issues with non-compete clauses and how their expansion into the newer job fields has greatly impacted the economy and the employees of the occupations. The clauses are usually to varied in the sense that there isn’t a minimum or maximum amount of time that can be applied, another thing is that the clause …show more content…
Workers that have signed non-compete clause when they started their job are less likely to change their current employment, especially when the skills they posses are less transferal in other industries and firms. Usually when workers attempt to change their jobs, they will change their field entirely, or even refrain from working for the duration that the clause last, for fear of violating the terms highlighted in a non-compete clause. But when a worker chose not to honor the non-compete clause usually do it by seeking protection from lawsuits by joining a larger firm. This creates the gap in innovative activities and entrepreneurial ventures that would arise faster if the non-compete clause wasn’t their, economic growth can be measured in many ways and one of these ways is the amount of entrepreneurial ventures are happening along with how much innovation is happening. Along with that since our economy does allow the government to interfere to regulate aspects that greatly effect our economy we could implement regulations on free employment, and provide restrictions on the clauses that harm the economy. We can see this in effect with the eminent domain clause which allows the government to enforce regulations and end bad practices by companies and other economic entities when dealing with interstate commerce and it is possible to argue that by restricting free worker flow it might fall under interstate commerce because it restricts the flow of ideas and innovation throughout the country. The focus the government should have should be on intervening when companies are being socially irresponsible abusing the non-compete clause, by limiting the non-compete clause the country as a whole will improve. This in turn effects the US