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California Lawsuit Wants To Weaken Noncompetes (axios.com)

An anonymous reader shares a report: California already prohibits companies from enforcing noncompetes within the state, but a Bay Area life sciences company is asking a state court to go even further. Veeva Systems is suing three of its East Coast-based competitors and asking a California Superior Court judge to declare that it has the right to hire employees who have signed such agreements. Veeva also wants a court to limit the use of non-disparagement and confidentiality agreements. "Non-compete agreements are bad," the company said in its suit. "These agreements limit employment opportunities. They suppress wages. They keep employees trapped in jobs they do not want, and they keep employees from fairly competing with their former employers. These agreements restrict fair and robust competition for employees."

3 of 125 comments (clear)

  1. Re:one solution by grasshoppa · · Score: 5, Interesting

    Take this a step further, require them to report your last day of employment as the last day of the non-compete. Ie: no employment gaps on your resume.

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  2. Re:one solution by beelsebob · · Score: 5, Interesting

    Actually, that's (not quite) the reason why non-competes are invalid in CA. The court ruled that a company wouldn't just have to pay you your full salary, but in fact would have to pay you more than your full salary during the non-compete period. The justification was that during this period you would not be keeping up with the latest technologies, and your skills would bit-rot. You'd become inherently less employable, and the company must compensate you for that.

  3. Re:one solution by alvinrod · · Score: 4, Interesting

    That and most people in the software industry (and I imagine many other fields) switch jobs for a pay raise. Even that alone is enough to justify asking for more than your previous salary. The fairest way to do it would do a non-compete would be for the previous company to have an option to pay whatever your next employer is offering (or something close to 100% of that amount) to not work for them for some period of time.

    I think that alone makes it a fair compensation and there's nothing stopping a person from updating their skill set while they wait for the non-compete clause to expire. If you want to stay sharp, there're are plenty of open source projects to get involved in and there are plenty that are using new languages, technology, etc.