ABSTRACT
Competitive job markets are critical to the success of the national economy, spurring innovation while boosting wages and labor equality. The moment is ripe for the new administration to foster competitive job markets by banning noncompete agreements (noncompetes). New empirical evidence shows that noncompetes have harmful effects on job mobility, wages, competition, entrepreneurship, and equality. Yet noncompetes are widely included in employment contracts. And inconsistent state rules on noncompetes (and their enforcement) have led to employee confusion and disputes among state courts. A tough, consistent federal strategy to eliminate noncompetes is needed …
Lemley, Mark A and Lobel, Orly, Banning Noncompete Agreements to Create Competitive Job Markets (January 26, 2021). Day One Project, January 2021.
First posted 2021-02-01 07:17:12
Leave a Reply