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this post was submitted on 07 Jul 2023
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Isn’t the FTC in the process of banning non-compete agreements? So the rules that Musk is claiming were broken are on their way out?
NCAs are already largely unenforceable anyway. Federal and state laws prohibit them except in cases of direct competition and the employee having specialized knowledge or skills. And even then, they can't be for long periods of time, and if they would prevent the employee from a livelihood they can't be enforced.
Usually what happens is someone who has a NCA will be hired by a new employer. That employer will see how long the NCA is in force and just have the employee on the payroll but not working until it expires. That, or they will pay the penalty in the NCA, whichever is cheaper.
Twitter is in direct competition with Facebook/meta/threads. And Twitter layoffs were 6 months or less ago. And these guys presumably have specialized knowledge.
So it seems like many of the criteria would be met.
NCA usually for employees that resigned. That would be messed up if they can just hire some smart people and immediately fires them to block them for joining competitors
And it's already illegal in California where both Twitter and Facebook are headquartered