Workers cannot reach their true potential without the freedom to negotiate a higher wage with a new company or find another job if a non-compete stands in their way according to the Obama administration. They are urging states to bar companies from requiring low-wage workers and other employees not privy to trade secrets to sign them.
Employee non-compete agreements, or restrictive covenants, stop workers from taking jobs in similar industries for specified lengths of time within certain geographical limits after leaving a company. They also prohibit the disclosure of trade secrets, all in an effort to protect businesses.
The White House estimates that 20 percent of U.S. workers are bound by non-compete agreements, with 14 percent of those earning less than 40K. They are calling for states to ban agreements not proposed before a job offer or promotion and limiting enforcement of the agreements when a worker is laid off in an effort to protect workers.
If you are asked to sign a Iowa non-compete agreement by your employer or are in violation of one, contact the Davenport, Iowa employment Law Offices of McDonald, Woodward & Carlson for assistance today.
Source: Reuters, “White House Urges Ban on Non-Compete Agreements for Many Workers”, by Daniel Weissner, October 25, 2016.