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Research shows that non-compete agreements make labor markets less competitive, reduce wages and reduce labor mobility. [3] [1] While non-compete agreements may incentivize company investment into their workers and research, they may also reduce innovation and productivity by employees who may be forced to leave a sector when they leave a firm.
Non-compete agreements will be enforced in Illinois if the agreement is ancillary to a valid relationship (employment, sale of a business, etc.) and (1) must be no greater in scope than is required to protect a legitimate business interest of the employer, (2) must not impose an undue hardship on the employee, and (3) cannot be injurious to the ...
Such a contract should be tested by a "rule of reason," meaning that it should be deemed legitimate if "necessary and ancillary." An example of the naked type of restraint would be the price-fixing and bid-allocation agreements involved in the Addyston case. Taft said that "we do not think there is any question of reasonableness open to the ...
Shutterstock Wow! When I wrote an article on How Do I Get Out Of My Noncompete Agreement?, I found out that AOL Jobs readers have lots of questions about noncompetes, and I don't blame you. I get ...
In addition to banning all new noncompetes, the FTC's rule applies to all existing noncompete agreements. Employers will now have to provide notice to workers bound to a current noncompete that it ...
Getty Images Massachusetts Gov. Deval Patrick has recently announced that he supports efforts to make noncompete agreements unenforceable in Massachusetts. Patrick's Secretary of Housing and ...
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