New York Employees are Shackled by Old Chains
New York still enforces non-competition agreements. These agreements have haunted employees for ages because they severely restrict a person's ability to find a new job. New York employees can find themselves trapped in bad jobs because of these agreements. Non-competition agreements also force experienced employees to change careers because they prevent people from transferring positions among competing firms in the same fields.
In California, however, these agreements are void and cannot be enforced. California has determined that non-competition agreements do not serve any good public purpose and will not enforce them. In fact, if a California employee loses a job over a non-compete agreement, they can sue for wrongful termination. Why is New York still in the dark ages and allowing companies to restrict an employee's ability to move between jobs? The public loses here because it is bad for the economy.
In New York, good employees are trapped in bad companies. Worse, employees who build expertise in a field are forced to change careers and start over again just to avoid these non-competition agreements. This damages efficiency and harms the economy. It wastes skill and experience in the workforce.
Any legitimate concern about the transfer of confidential company information can be handled with a confidentiality agreement. There is no reason to trap an employee or force them to change careers. People should be free to work for whomever they please and talent needs to move freely for the economy to remain efficient.
Companies argue that non-compet]ion agreements protect their secrets and prevent employees from leaving and transferring vital information to competitors. But this agreement misses the mark. First, if a company wants to keep its employees from joining competitors, it should keep them happy so they don't want to leave. Second, very few companies have real secrets and those few companies that do have genuine confidential information can protect it with other agreements. Binding employees with non-competition agreements destroys the competitive engine that drives vibrant economies. They are bad for everyone - even the companies that use them are hurt because they are not motivated to create a positive work environment that will retain employees out of loyalty. Instead the companies shackle their employees with non-compete agreements.
