Allwork.Space
The FUTURE OF WORK® since 2003
Find A Flexible Office Here
  • All Topics
    • Business
    • Biophilic Design
    • Career Growth
    • Coliving
    • Collaboration
    • Coworking
    • CRE
    • DE&I
    • Digital Nomads
    • Future of Work
    • Home Office
    • Human Resources (HR)
    • Hybrid Work
    • Investment
    • Leadership
    • Marketing
    • Mental Health
    • Mergers & Acquisitions
    • Office Furniture
    • Productivity
    • PropTech
    • Remote Work
    • Self-care
    • SMBs
    • Social Impact
    • Space-as-a-Service
    • Technology
    • Virtual Office
    • Work-life Balance
    • Workforce
    • Workplace Design
    • Workplace Wellness
  • News
  • Business
    Adapt Or Die: Future-Proof Your Business With These Essential Tips

    Adapt Or Die: Future-Proof Your Business With These Essential Tips

    Adaptable Hybrid Work Approach Crucial for Employee Retention

    Adaptable Hybrid Work Approach Crucial for Employee Retention

    10 Changes Your Organization Must Make To Succeed This Year

    10 Changes Your Organization Must Make To Succeed This Year

    Do Pay Transparency Laws Actually Matter

    Do Pay Transparency Laws Actually Matter?

    Evaluating the Effectiveness of Hybrid Work Models and Office Reintegration

    Evaluating the Effectiveness of Hybrid Work Models and Office Reintegration

    Establish An Effective Hybrid Work Environment In 6 Steps

    Establish An Effective Hybrid Work Environment In 6 Steps

    IWG Selling The Crown Jewels? You Would Think So Judging By The Asking Price

    IWG Selling The Crown Jewels? You Would Think So Judging By The Asking Price

    The Million-Dollar Mistake Businesses In California Cannot Afford To Make: Compliance Deadline Approaching!

    The Million Dollar-Mistake Businesses In California Cannot Afford To Make: Compliance Deadline Approaching!

    How Africa’s Economy will Harness Digital Tech in the Future of Work

    How Africa’s Economy will Harness Digital Tech in the Future of Work

  • Work-life
    Astonishing Deficit in Hybrid Work Protocol Confirmed by Recent Studies

    Astonishing Deficit in Hybrid Work Protocol Confirmed by Recent Studies

    Driving Sustainable Change: Advice for Facilities Managers

    Driving Sustainable Change: Advice for Facilities Managers

    How To Strengthen Your Workforce: Cultivate Growth Opportunities For Women

    How To Strengthen Your Workforce: Cultivate Growth Opportunities For Women

    Build The Best Work Playlist: 8 Songs To Avoid And 10 To Blast

    Build The Best Work Playlist: 8 Songs To Avoid And 10 To Blast

    Escape The Lingering Cold In These 7 Countries Perfect For Remote Work

    Escape The Lingering Cold In These 7 Countries Perfect For Remote Work

    Say Goodbye Comfy Pants – 9 in 10 Companies Planning RTO This Year

    Say Goodbye Comfy Pants – 9 in 10 Companies Planning RTO This Year

    Remote Work Is Just E-Commerce Déjà Vu All Over Again

    Remote Work Is Just E-Commerce Déjà Vu All Over Again

    Four Days Is Enough

    Four Days Is Enough

    The CDC’s Vision For The Future Of Worker Health

    The CDC’s Vision For The Future Of Worker Health

  • Tech
    What Every Business Needs to Know About Managed Development Services

    What Every Business Needs to Know About Managed Development Services

    LiquidSpace and Kadence Team Up to Revolutionize Hybrid Work

    LiquidSpace and Kadence Team Up to Revolutionize Hybrid Work

    Using IoT Tech Is Crucial For Office Planning And Employee Health

    Using IoT Tech Is Crucial For Office Planning And Employee Health

    Paving the Way for the Future of the Workplace With the Metaverse

    Paving the Way for the Future of the Workplace With the Metaverse

    What You Need To Know About Web3 And Finding Great Developers

    What You Need To Know About Web3 And Finding Great Developers

    The Price Of Remote Work? Your Privacy

    The Price Of Remote Work? Your Privacy

    Should You Put Your Job On AI-Pilot Mode?

    Should You Put Your Job On AI-Pilot Mode?

    3 Steps To Build A Three-Dimensional Hybrid Workplace

    3 Steps To Build A Three-Dimensional Hybrid Workplace

    PETER MISCOVICH

    Peter Miscovich JLL Global Future Of Work Leader | The Hybrid Workplace Evolution: Unlocking The Future Of Work

  • Design
    Redefining “Amenity” in the Workplace

    Redefining “Amenity” in the Workplace

    How to Design for Behavior To Create a New In-Person Working Environment

    How to Design for Behavior To Create a New In-Person Working Environment

    People-Driven Alternate Workspaces

    People-Driven Alternate Workspaces

    How Physical Spaces Shape Human Relationships and Emotional Well-Being

    How Physical Spaces Shape Human Relationships and Emotional Well-Being

    Resimercial Design Balances Comfort and Sustainability in the Office

    Resimercial Design Balances Comfort and Sustainability in the Office

    Sustainability, Well-being, and the Building Blocks of a Biophilic Workplace

    Sustainability, Well-being, and the Building Blocks of a Biophilic Workplace

    Repurposing Furniture Realizing the Environmental, Economic, and Design Benefits

    Repurposing Furniture: Realizing the Environmental, Economic, and Design Benefits

    Designing A Better Future For The Workplace

    Designing A Better Future For The Workplace

    How Healthy Is Your Building?

    How Healthy Is Your Building?

  • Workforce
    Hiring Internationally Doesn't Have To Make Payroll Complicated

    Hiring Internationally Doesn’t Have To Make Payroll Complicated

    Master the Art of Hosting Engaging Virtual Meetings

    Master the Art of Hosting Engaging Virtual Meetings

    Adapt Or Die: Future-Proof Your Business With These Essential Tips

    5 Steps To Master The Hybrid Work Model

    Unmasking the Corporate Return-to-Work Fallacy A Genuine Approach to Junior Staff Development

    Unmasking the Corporate Return-to-Work Fallacy: A Genuine Approach to Junior Staff Development

    Diplomas and Dilemmas: How 2023 Graduates Can Navigate Job Market Chaos

    Diplomas and Dilemmas: How 2023 Graduates Can Navigate Job Market Chaos

    Want To Stop Employees From Walking Out The Door? Build Them A Career Ladder

    Want To Stop Employees From Walking Out The Door? Build Them A Career Ladder

    Unveiling the Hidden Potentials of Remote Work Productivity

    Unveiling the Hidden Potentials of Remote Work Productivity

    Side Hustles or Survival Jobs? Overemployment Spikes Among Remote Workers

    Side Hustles or Survival Jobs? Overemployment Spikes Among Remote Workers

    The Reality of Remote Work and Wellness

    The Reality of Remote Work and Wellness

  • Coworking
    Tech Check: 5 Signs Your Coworking Space Is Due For An Upgrade

    Tech Check: 5 Signs Your Coworking Space Is Due For An Upgrade

    Reaching Beyond The Desk: How Coworking Spaces Can Transform Communities

    Reaching Beyond The Desk: How Coworking Spaces Can Transform Communities

    All Good Work Partners with JLL To Support Nonprofit Organizations

    All Good Work Partners with JLL To Support Nonprofit Organizations

    We Told You So

    We Told You So

    LiquidSpace and Kadence Team Up to Revolutionize Hybrid Work

    LiquidSpace and Kadence Team Up to Revolutionize Hybrid Work

    How the Rise of Four-Day Work Weeks Could Reshape the Coworking Industry

    How the Rise of Four-Day Work Weeks Could Reshape the Coworking Industry

    How Coworking Spaces Can Leverage Blockchain to Enhance Their Services

    How Coworking Spaces Can Leverage Blockchain to Enhance Their Services

    Want To Work At The Ritziest Coworking Office In The World? It’s Going To Cost You

    Want To Work At The Ritziest Coworking Office In The World? It’s Going To Cost You

    The Warehouse_ Where Coworking Meets Inspiration In The Heart Of New Orleans

    The Warehouse: Where Coworking Meets Inspiration In The Heart Of New Orleans

  • Marketing
    8 Reasons Why Sponsored Content Is Worth The Investment For Your Brand

    8 Reasons Why Sponsored Content Is Worth The Investment For Your Brand

    Instagram GenZ

    2023 Instagram Trends Reveal How To Market To Gen Z

    TrueView360 Interactive Virtual Tours

    TrueView360s Interactive Virtual Tours

    2023 Future Of Work Forecast: Focus Marketing On Values and Customer Experience, Not The Product

    2023 Future Of Work Forecast: Focus Marketing On Values and Customer Experience, Not The Product

    Want Your Coworking Newsletter to Actually Convert

    Want Your Coworking Newsletter to Actually Convert? Start by Keeping It Simple, Fun, and Consistent

    5 Pros Share How To Use Instagram To Grow Your Coworking Business

    5 Pros Share How To Use Instagram To Grow Your Coworking Business

    Want To Wow Coworking Members

    Want To “Wow” Coworking Members? It All Starts With (The Right) Insights

    6 Free, High-Quality Photo Sites To Level Up Your Marketing

    6 Free, High-Quality Photo Sites To Level Up Your Marketing

    The Creator Economy Is Dramatically Changing Marketing Practices, Here’s Why

    The Creator Economy Is Dramatically Changing Marketing Practices, Here’s Why

  • CRE
    75% Of Business Leaders Lack Data Needed For Crucial CRE Decisions

    75% Of Business Leaders Lack Data Needed For Crucial CRE Decisions

    Rapid Work Style Shifts Are Tanking Tax Revenues — Can City Planners Catch Up?

    Rapid Work Style Shifts Are Tanking Tax Revenues — Can City Planners Catch Up?

    San Francisco Skyline

    The Future of Commercial Real Estate in San Francisco Doesn’t Look Good

    3 Things CRE Players Must Do To Stay Relevant In 2023

    2023 Future Of Work Forecast: 3 Things CRE Players Must Do To Stay Relevant In 2023

    The Office Space Sector Is Projected To See A Strong Fourth Quarter In 2022

    The Office Space Sector Is Projected To See A Strong Fourth Quarter In 2022

    Meet Flex Space More Chaotic Cousin Gray Spaces

    Meet Flex Space’s More Chaotic Cousin: Gray Spaces

    The Future Of Our Offices And Our Planet Hinges On The Real Estate Industry Priorities

    The Future Of Our Offices — And Our Planet — Hinges On The Real Estate Industry’s Priorities

    JLL New Future Of Work Survey The Next Few Years Are Crucial For Commercial Real Estate (2)

    JLL’s New Future Of Work Survey: The Next Few Years Are Crucial For Commercial Real Estate

    What Is The Impact Of Hybrid Working On Space Optimization

    What Is The Impact Of Hybrid Working On Space Optimization?

  • Podcast
  • Subscribe
  • More
    • Advertise With Us
    • Marketplace
    • Events
  • All Topics
    • Business
    • Biophilic Design
    • Career Growth
    • Coliving
    • Collaboration
    • Coworking
    • CRE
    • DE&I
    • Digital Nomads
    • Future of Work
    • Home Office
    • Human Resources (HR)
    • Hybrid Work
    • Investment
    • Leadership
    • Marketing
    • Mental Health
    • Mergers & Acquisitions
    • Office Furniture
    • Productivity
    • PropTech
    • Remote Work
    • Self-care
    • SMBs
    • Social Impact
    • Space-as-a-Service
    • Technology
    • Virtual Office
    • Work-life Balance
    • Workforce
    • Workplace Design
    • Workplace Wellness
  • News
  • Business
    Adapt Or Die: Future-Proof Your Business With These Essential Tips

    Adapt Or Die: Future-Proof Your Business With These Essential Tips

    Adaptable Hybrid Work Approach Crucial for Employee Retention

    Adaptable Hybrid Work Approach Crucial for Employee Retention

    10 Changes Your Organization Must Make To Succeed This Year

    10 Changes Your Organization Must Make To Succeed This Year

    Do Pay Transparency Laws Actually Matter

    Do Pay Transparency Laws Actually Matter?

    Evaluating the Effectiveness of Hybrid Work Models and Office Reintegration

    Evaluating the Effectiveness of Hybrid Work Models and Office Reintegration

    Establish An Effective Hybrid Work Environment In 6 Steps

    Establish An Effective Hybrid Work Environment In 6 Steps

    IWG Selling The Crown Jewels? You Would Think So Judging By The Asking Price

    IWG Selling The Crown Jewels? You Would Think So Judging By The Asking Price

    The Million-Dollar Mistake Businesses In California Cannot Afford To Make: Compliance Deadline Approaching!

    The Million Dollar-Mistake Businesses In California Cannot Afford To Make: Compliance Deadline Approaching!

    How Africa’s Economy will Harness Digital Tech in the Future of Work

    How Africa’s Economy will Harness Digital Tech in the Future of Work

  • Work-life
    Astonishing Deficit in Hybrid Work Protocol Confirmed by Recent Studies

    Astonishing Deficit in Hybrid Work Protocol Confirmed by Recent Studies

    Driving Sustainable Change: Advice for Facilities Managers

    Driving Sustainable Change: Advice for Facilities Managers

    How To Strengthen Your Workforce: Cultivate Growth Opportunities For Women

    How To Strengthen Your Workforce: Cultivate Growth Opportunities For Women

    Build The Best Work Playlist: 8 Songs To Avoid And 10 To Blast

    Build The Best Work Playlist: 8 Songs To Avoid And 10 To Blast

    Escape The Lingering Cold In These 7 Countries Perfect For Remote Work

    Escape The Lingering Cold In These 7 Countries Perfect For Remote Work

    Say Goodbye Comfy Pants – 9 in 10 Companies Planning RTO This Year

    Say Goodbye Comfy Pants – 9 in 10 Companies Planning RTO This Year

    Remote Work Is Just E-Commerce Déjà Vu All Over Again

    Remote Work Is Just E-Commerce Déjà Vu All Over Again

    Four Days Is Enough

    Four Days Is Enough

    The CDC’s Vision For The Future Of Worker Health

    The CDC’s Vision For The Future Of Worker Health

  • Tech
    What Every Business Needs to Know About Managed Development Services

    What Every Business Needs to Know About Managed Development Services

    LiquidSpace and Kadence Team Up to Revolutionize Hybrid Work

    LiquidSpace and Kadence Team Up to Revolutionize Hybrid Work

    Using IoT Tech Is Crucial For Office Planning And Employee Health

    Using IoT Tech Is Crucial For Office Planning And Employee Health

    Paving the Way for the Future of the Workplace With the Metaverse

    Paving the Way for the Future of the Workplace With the Metaverse

    What You Need To Know About Web3 And Finding Great Developers

    What You Need To Know About Web3 And Finding Great Developers

    The Price Of Remote Work? Your Privacy

    The Price Of Remote Work? Your Privacy

    Should You Put Your Job On AI-Pilot Mode?

    Should You Put Your Job On AI-Pilot Mode?

    3 Steps To Build A Three-Dimensional Hybrid Workplace

    3 Steps To Build A Three-Dimensional Hybrid Workplace

    PETER MISCOVICH

    Peter Miscovich JLL Global Future Of Work Leader | The Hybrid Workplace Evolution: Unlocking The Future Of Work

  • Design
    Redefining “Amenity” in the Workplace

    Redefining “Amenity” in the Workplace

    How to Design for Behavior To Create a New In-Person Working Environment

    How to Design for Behavior To Create a New In-Person Working Environment

    People-Driven Alternate Workspaces

    People-Driven Alternate Workspaces

    How Physical Spaces Shape Human Relationships and Emotional Well-Being

    How Physical Spaces Shape Human Relationships and Emotional Well-Being

    Resimercial Design Balances Comfort and Sustainability in the Office

    Resimercial Design Balances Comfort and Sustainability in the Office

    Sustainability, Well-being, and the Building Blocks of a Biophilic Workplace

    Sustainability, Well-being, and the Building Blocks of a Biophilic Workplace

    Repurposing Furniture Realizing the Environmental, Economic, and Design Benefits

    Repurposing Furniture: Realizing the Environmental, Economic, and Design Benefits

    Designing A Better Future For The Workplace

    Designing A Better Future For The Workplace

    How Healthy Is Your Building?

    How Healthy Is Your Building?

  • Workforce
    Hiring Internationally Doesn't Have To Make Payroll Complicated

    Hiring Internationally Doesn’t Have To Make Payroll Complicated

    Master the Art of Hosting Engaging Virtual Meetings

    Master the Art of Hosting Engaging Virtual Meetings

    Adapt Or Die: Future-Proof Your Business With These Essential Tips

    5 Steps To Master The Hybrid Work Model

    Unmasking the Corporate Return-to-Work Fallacy A Genuine Approach to Junior Staff Development

    Unmasking the Corporate Return-to-Work Fallacy: A Genuine Approach to Junior Staff Development

    Diplomas and Dilemmas: How 2023 Graduates Can Navigate Job Market Chaos

    Diplomas and Dilemmas: How 2023 Graduates Can Navigate Job Market Chaos

    Want To Stop Employees From Walking Out The Door? Build Them A Career Ladder

    Want To Stop Employees From Walking Out The Door? Build Them A Career Ladder

    Unveiling the Hidden Potentials of Remote Work Productivity

    Unveiling the Hidden Potentials of Remote Work Productivity

    Side Hustles or Survival Jobs? Overemployment Spikes Among Remote Workers

    Side Hustles or Survival Jobs? Overemployment Spikes Among Remote Workers

    The Reality of Remote Work and Wellness

    The Reality of Remote Work and Wellness

  • Coworking
    Tech Check: 5 Signs Your Coworking Space Is Due For An Upgrade

    Tech Check: 5 Signs Your Coworking Space Is Due For An Upgrade

    Reaching Beyond The Desk: How Coworking Spaces Can Transform Communities

    Reaching Beyond The Desk: How Coworking Spaces Can Transform Communities

    All Good Work Partners with JLL To Support Nonprofit Organizations

    All Good Work Partners with JLL To Support Nonprofit Organizations

    We Told You So

    We Told You So

    LiquidSpace and Kadence Team Up to Revolutionize Hybrid Work

    LiquidSpace and Kadence Team Up to Revolutionize Hybrid Work

    How the Rise of Four-Day Work Weeks Could Reshape the Coworking Industry

    How the Rise of Four-Day Work Weeks Could Reshape the Coworking Industry

    How Coworking Spaces Can Leverage Blockchain to Enhance Their Services

    How Coworking Spaces Can Leverage Blockchain to Enhance Their Services

    Want To Work At The Ritziest Coworking Office In The World? It’s Going To Cost You

    Want To Work At The Ritziest Coworking Office In The World? It’s Going To Cost You

    The Warehouse_ Where Coworking Meets Inspiration In The Heart Of New Orleans

    The Warehouse: Where Coworking Meets Inspiration In The Heart Of New Orleans

  • Marketing
    8 Reasons Why Sponsored Content Is Worth The Investment For Your Brand

    8 Reasons Why Sponsored Content Is Worth The Investment For Your Brand

    Instagram GenZ

    2023 Instagram Trends Reveal How To Market To Gen Z

    TrueView360 Interactive Virtual Tours

    TrueView360s Interactive Virtual Tours

    2023 Future Of Work Forecast: Focus Marketing On Values and Customer Experience, Not The Product

    2023 Future Of Work Forecast: Focus Marketing On Values and Customer Experience, Not The Product

    Want Your Coworking Newsletter to Actually Convert

    Want Your Coworking Newsletter to Actually Convert? Start by Keeping It Simple, Fun, and Consistent

    5 Pros Share How To Use Instagram To Grow Your Coworking Business

    5 Pros Share How To Use Instagram To Grow Your Coworking Business

    Want To Wow Coworking Members

    Want To “Wow” Coworking Members? It All Starts With (The Right) Insights

    6 Free, High-Quality Photo Sites To Level Up Your Marketing

    6 Free, High-Quality Photo Sites To Level Up Your Marketing

    The Creator Economy Is Dramatically Changing Marketing Practices, Here’s Why

    The Creator Economy Is Dramatically Changing Marketing Practices, Here’s Why

  • CRE
    75% Of Business Leaders Lack Data Needed For Crucial CRE Decisions

    75% Of Business Leaders Lack Data Needed For Crucial CRE Decisions

    Rapid Work Style Shifts Are Tanking Tax Revenues — Can City Planners Catch Up?

    Rapid Work Style Shifts Are Tanking Tax Revenues — Can City Planners Catch Up?

    San Francisco Skyline

    The Future of Commercial Real Estate in San Francisco Doesn’t Look Good

    3 Things CRE Players Must Do To Stay Relevant In 2023

    2023 Future Of Work Forecast: 3 Things CRE Players Must Do To Stay Relevant In 2023

    The Office Space Sector Is Projected To See A Strong Fourth Quarter In 2022

    The Office Space Sector Is Projected To See A Strong Fourth Quarter In 2022

    Meet Flex Space More Chaotic Cousin Gray Spaces

    Meet Flex Space’s More Chaotic Cousin: Gray Spaces

    The Future Of Our Offices And Our Planet Hinges On The Real Estate Industry Priorities

    The Future Of Our Offices — And Our Planet — Hinges On The Real Estate Industry’s Priorities

    JLL New Future Of Work Survey The Next Few Years Are Crucial For Commercial Real Estate (2)

    JLL’s New Future Of Work Survey: The Next Few Years Are Crucial For Commercial Real Estate

    What Is The Impact Of Hybrid Working On Space Optimization

    What Is The Impact Of Hybrid Working On Space Optimization?

  • Podcast
  • Subscribe
  • More
    • Advertise With Us
    • Marketplace
    • Events
No Result
View All Result
Allwork.Space
Subscribe
Nexudus Ad
Home Workforce

4 Monumental Ways Banning Noncompete Clauses Will Transform The Future Of Work

Employees are eyeing another win in the ongoing battle with employers over workplace rights. Banning non-compete clauses would have vast implications in the future of work and could initiate major problems for companies in the war for talent, information security and more.

byAayat Ali
January 18, 2023
in Workforce
Reading Time: 10 mins read
A A
4 Monumental Ways Banning Noncompete Clauses Will Transform The Future Of Work

Much can be gained for employees and the economy from a sweeping noncompete clause ban, although it will take adjusting current policies to mitigate corporate challenges.

Share on FacebookShare on TwitterShare to Network
OfficerRnD_ Flex Startup Program_Image_Leaderboard_AllWork_728x90
  • The Federal Trade Commission (FTC) has announced a proposal that would ban noncompete clauses, which are contracts that can prohibit employees at a company from job jumping within their career field, trading company insights, and more. 
  • Without noncompetes, around one in five workers would gain the freedom to move freely within the job market. 
  • The FTC says outlawing noncompete clauses could boost wages by around $300 billion annually; many business leaders are concerned about the other vast potential implications of banning these clauses. 

Coca-Cola’s secret formula might be at risk. At least that’s one of the worries if a recent Federal Trade Commission (FTC) proposal to ban noncompete clauses is approved.  

Agreements like noncompete clauses are part of how information like that remains confidential. While the proposed ban would “generally not apply to other types of employment restrictions, like non-disclosure agreements,” intellectual property is just one of the many issues that is being discussed in relation to the news of a proposed ban of these clauses.  

The future of work would look dramatically different without them, and business leaders are sounding the alarm that their removal would change everything from the protection of trade secrets to hiring practices, salary ranges, employee turnover, career trajectories, advertising practices, and more.  

Fiverr Freelancing

How and why noncompete clauses might be banned 

The FTC announced earlier this month that it is seeking to ban noncompete clauses, a stipulation that prohibits employees at a company from job hopping within their industry or sharing company insights, and often much more.  

Without noncompetes, around one in five workers would gain the freedom to move freely within the job market. For perspective, that’s 20% of the workforce, approximately 30 million American workers. 

According to the agency, such clauses exacerbate inequalities in the workforce by limiting and exploiting opportunities for professionals. 

“The freedom to change jobs is core to economic liberty and to a competitive, thriving economy,” said FTC Chair Lina M. Khan. “Noncompetes block workers from freely switching jobs, depriving them of higher wages and better working conditions, and depriving businesses of a talent pool that they need to build and expand.” 

The FTC’s announcement says “the proposed rule would apply to independent contractors and anyone who works for an employer, whether paid or unpaid. It would also require employers to rescind existing noncompetes and actively inform workers that they are no longer in effect.” 

Outlawing noncompetes, the FTC says, could boost wages by around $300 billion annually. 

The proposed rule is in the first step of the agency’s rulemaking process and is currently open to public comment through March 10. 

Meanwhile, business leaders are concerned about the potential implications of banning these clauses.  

Prohibiting noncompete clauses would rock the future of work 

If passed, employees could be served with another astounding win in the ongoing battle with employers over workplace rights. However, it could also initiate major problems for companies in the future. 

Here are four likely outcomes of banning noncompete agreements that could reshape the world of work in the coming years.  

1. Employee Exodus

One of the biggest employer perks of a noncompete clause is being able to retain their top talent. 

Employees under these clauses are typically restricted from taking jobs with competing companies or companies within the same industry for a set period of time — often many years — and from opening their own competing business, sometimes with a distance restriction added. 

These agreements apply even if the cause of the job change is something so innocuous as moving to another area of a city and wanting a shorter commute.  

This stops workers from joining companies that potentially offer better pay and benefits. As FranchiseWire puts it, “once [employees] gain expertise as they perform their duties, they aren’t able to take those marketable skills elsewhere for a lengthy period. Few people will want — or be able — to start over in another field, nor can most afford to be idle until the noncompete agreement expires and they can move into a job with better wages and possibly more move-up potential.” 

This stifled mobility is where the FTC’s estimated $300 billion wage boost comes into play. By barring companies from implementing such policies, workers would be able to seek greener pastures as they please. 

Research from the Economic Policy Institute shows 49.4% of organizations require some employees to enter a noncompete agreement, meaning banning these policies could give many workers the freedom to choose where to work without fear of repercussions. 

Some noncompete clauses can also ban the hiring of former coworkers by employees who have left. Removing that restriction could allow former employees to begin hiring others into their new company, creating a cascade of departures and potentially gutting a single portion of a company.  

2. Increased Competition for Talent 

Because of a likely employee exodus, companies could also find themselves thrown deeper into the pits of the battle for top talent.

It’s no secret that the fight to retain employees has become tough in recent years thanks to the reignited fight for workers’ rights. Taking into consideration the independence that would follow a noncompete clause ban, hiring managers will need to do much more to keep their talent from being poached. 

During an era in which many industries are turning to job cuts as a recessionary precaution, companies may face an even tighter battle to retain their layoff survivors, who may be tempted to jump ship due to depleting motivation and morale. 

The fight to keep and attract top candidates would also lead to higher salaries, and thus increased payroll costs.   

3. Loss of Intellectual Property and Proprietary Information 

One of the biggest arguments in favor of noncompete agreements is the threat of losing intellectual property and other private company information. 

Noncompetes generally protect companies from revealing their trade secrets, therefore protecting them from rivals within their industry.

Companies have a commitment to keeping their information private and secure, so the intention of these agreements is valid. However, the reality is that most of these clauses impact lower-paid workers, from yoga studios to sandwich chains, barring them from progressing in their careers. 

“The biggest issue, in many ways, has less to do with the noncompetes themselves and more to do with how indiscriminately they’re used and worded, which in many cases, prevents workers from getting better jobs,” Albert Fong, a vice president of product marketing, wrote on LinkedIn.  

“While some may argue that noncompetes are necessary, the biggest issue is they’re increasingly being used on low-wage earners with no access to trade secrets,” he said.  

Several companies with low-wage workers have been subject to lawsuits over their use of noncompete clauses, including Jersey Mike’s and Jimmy John’s. 

4. Spike in Entrepreneurism 

The loss of intellectual property is certainly a possibility with the ban of noncompete clauses; some workers may choose to flee their employer to start their own company once the clauses expire.

Professionals who were previously kept from testing out their entrepreneurial skills would suddenly have the newfound drive and ability.

Whether the idea is to improve upon existing business models they learned at a former employer or starting a totally unrelated business, prohibiting noncompetes and opening the door for new business creation could accelerate economic competition at an unprecedented rate. 

“Noncompetes reduce entrepreneurship and start-up formation, stagnating ambition, growth, creativity and innovation among the workforce,” said Marco Zappacosta, CEO and cofounder of Thumbtack, which eliminated noncompetes in 2020. 

How Leaders Can Prepare 

The banning of noncompete agreements serves as a win for employees, but leaders shouldn’t fret. 

Much can be gained from a sweeping ban like this, although it will take adjusting current policies to mitigate potential losses for companies that currently use a noncompete clause.  

Up the Ante 

As mentioned, prohibiting noncompetes may lead to another Great Resignation as workers have the freedom to find jobs that provide better opportunities.

Perhaps the best way to prevent a mass exodus is to review current benefits packages and reconsider their impact. 

If a rival company pays five dollars more an hour for the same role, there is little reason for an employee to stay on at their current employer.  

But leaders can suppress the threat of employee turnover by giving workers what they desire from their jobs, typically in the form of better wages and benefits such as health insurance and paid time off. 

Look to Existing Laws

For starters, companies can implement some other form of protection in the form of reviewing existing laws that may provide security. In fact, states such as California have already banned nearly all forms of noncompetes and are able to continue keeping their company secrets secure with policies such as the Defend Trade Secrets Act (DTSA). 

The DTSA allows “[a]n owner of a trade secret that is misappropriated [to] bring a civil action… if the trade secret is related to a product or service used in, or intended for use in, interstate or foreign commerce.”

This gives companies the power to take legal action if any trade secrets are revealed to rivals, still giving leaders the upper hand in what they argue is the worst-case scenario of banning noncompete clauses.  

Zappacosta also adds that NDAs (non-disclosure agreements) are a much “more effective, and less restrictive, approach to” keeping proprietary information from being transferred.  

“Noncompetes impact every level of the economy, with working-class employees bearing the brunt of the pain — especially those who live outside big cities with healthy job markets,” he said. “In small towns, these agreements can severely limit or totally eliminate people’s ability to pursue other job opportunities.” 

“A real conversation about how to empower workers at every level is long overdue, and eliminating noncompetes nationwide is a good place to start,” added Zappacosta. 

Subscribe today to know what's changing tomorrow.

* indicates required
100% FREE. You can unsubscribe or manage your preferences at any time.
Tags: BusinessLeadershipWorkforce
Aayat Ali

Aayat Ali

Aayat is an editor for the Daily Digest based in Lexington, Kentucky. She has worked with local coworking spaces since August of 2017 and enjoys taking her firsthand knowledge to write about the fascinating, constantly evolving world of flexible workspaces.

No Result
View All Result

How will work change in 2023?

Subscribe today to know what's changing tomorrow.

* indicates required
100% FREE. You can unsubscribe or manage your preferences at any time.
A world of learning — on sale now. Expand your horizons with online courses starting at $11.99
2023 Media Kit Allwork.Space

Latest News

Pennsylvania Considers Incentives for 4-day Workweek

Pennsylvania Considers Incentives for 4-day Workweek

June 2, 2023
NYC Mayor’s Policy Reversal Opens Doors to Remote Workers

NYC Mayor’s Policy Reversal Opens Doors to Remote Workers

June 2, 2023
Unemployment Rate Increases Despite Job Growth

Unemployment Rate Increases Despite Job Growth

June 2, 2023
Amazon's RTO Mandate Sparks Employee Protest

Amazon’s RTO Mandate Sparks Employee Protest

June 1, 2023
Embrace AI or Be Left Behind Nvidia CEO Tells Graduates

Embrace AI or Be Left Behind Nvidia CEO Tells Graduates

June 1, 2023
Remote Work Deals Devastating $506B Blow To Office Property Values

Remote Work Deals Devastating $506B Blow To Office Property Values

June 1, 2023

News and Features

Business

Tech

Marketing

Design

Work-life

CRE

Coworking

Workforce

Daily Digest

Podcast

Resources

Marketplace

Events

Press Releases

FlexSpace, Coworking
and Office Space

Los Angeles

New York

Chicago

Washington, D.C.

Houston

Dallas

Miami

San Francisco

Atlanta

Philadelphia

Seattle

Austin

Company

About Us

Submit to Allwork.Space

Contact

Advertise

FlexSpace

Terms Of Use

FlexSpace FAQs

Privacy Policy

Connect with Allwork.Space

Twitter

Linkedin

Facebook

Instagram

YouTube

Apple Podcasts

Spotify

Google Podcasts

©2023 Allwork.Space  l  Exploring the FUTURE OF WORK® since 2003.

No Result
View All Result
  • News
  • Topics
    • Work-life
    • Workforce
    • Design
    • Tech
    • Coworking
    • Business
    • CRE
    • Marketing
  • Experts
    • Podcast
    • Opinions
  • Resources
    • Research + Reports
    • Marketplace
    • Find Office Space
    • Find Remote Jobs
    • Press
  • Events
  • About Us
    • Advertise
    • Submit to Allwork.Space
    • Contact
Subscribe

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
-
00:00
00:00

Queue

Update Required Flash plugin
-
00:00
00:00