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timoth3y | 8 months ago

Non-competes (including stealth non-competes like the OP mentioned) are being abused by US employers seeking leverage over their employees.

In fact, 12% of hourly workers earning $20 or less had to sign non-competes. These workers do not have access to corporate secrets. It simply reduces their power to negotiate with their employer.

https://www.minneapolisfed.org/article/2021/non-compete-cont...

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cam_l|8 months ago

Australia is straight up banning non competes for anyone earning under $175k, for this reason.

They are also tightening up the contract law around non competes to reduce the impact of the scare tactics employers have been using to bind low level employees with unenforceable, but still litigable, contract terms.

And scare tactics are really all they are (in this country), because even before they do this the courts have a track record in this country of looking very dimly on overly broad or restrictive non compete 'agreements'.

bravesoul2|8 months ago

Australia fair work is a beast. They just keep adding to it.

aforwardslash|8 months ago

Not only in the US; without going into too much detail, many countries in south America and Africa have strong business connections with the US, and it is quite common to see the ever-abusive dumb dumb US contract templates being used in those countries, even when local law differs significantly. Usually, the posture is "we can do whatever you want and you keep your mouth shut, or else we'll sue you for everything". I loathe organizations with these kind of contracts.

bobbruno|8 months ago

If the law has specific clauses about this that the contract disrespects, these conditions are not worth the paper they are written on.

At least in Brazil you can't enforce something the law doesn't allow in a contract - that clause would be considered void without nullifying the contract. And Labour law in Brazil leans (or used to lean) more in favor of the employee,so yes, the law would win. Another aspect there is that unions are more common than in the US, and they will help in such cases.

aforwardslash|8 months ago

On a personal note, I once was presented with such a (US) contract that also required me to list every NDA I had signed to date; Since then, I always assume most US lawyers are beyond incompetent.

KomoD|8 months ago

Is it more common in certain industries?