• Home
  • About Dan
    • Full CV
    • Dan’s Journey
  • Companies
  • Speaking
    • The 2023 Workplace Trends Keynote
    • The Hybrid Work Keynote
    • Total Well-being Keynote
    • Work 3.0 Keynote
    • A Whole New World of Work Keynote
    • Back to Human Keynote
    • Bridging the Multi-generational Gap Keynote
    • The LeaderShift Keynote
  • Books
    • Back to Human
      • Work Connectivity Index (WCI)
      • Online Course
      • The Millennial 100
      • Global Study
    • Promote Yourself
    • Me 2.0
  • Research
    • Workplace Trends Forecast
      • 2023
      • 2022
      • 2021
      • 2020
      • 2019
      • 2018
      • 2017
      • 2016
      • 2015
      • 2014
      • 2013
  • Courses
    • How to Support Flexible Work as a Manager
    • Hybrid Working Foundations
    • Managing Your Well-Being as a Leader
    • Emerging Leader Foundations
    • Personal Branding
  • Media
    • Podcast
    • Blog
    • Newsletter
    • Articles
    • Interviews
    • Spokesperson
    • Press
    • Quotes
  • Contact

Future of Work Expert, Keynote Speaker, NY Times Bestselling Author - Dan Schawbel

Future of Work Expert, Keynote Speaker, NY Times Bestselling Author - Dan Schawbel

  • Home
  • About Dan
    • Full CV
    • Dan’s Journey
  • Companies
  • Speaking
    • The 2023 Workplace Trends Keynote
    • The Hybrid Work Keynote
    • Total Well-being Keynote
    • Work 3.0 Keynote
    • A Whole New World of Work Keynote
    • Back to Human Keynote
    • Bridging the Multi-generational Gap Keynote
    • The LeaderShift Keynote
  • Books
    • Back to Human
      • Work Connectivity Index (WCI)
      • Online Course
      • The Millennial 100
      • Global Study
    • Promote Yourself
    • Me 2.0
  • Research
    • Workplace Trends Forecast
      • 2023
      • 2022
      • 2021
      • 2020
      • 2019
      • 2018
      • 2017
      • 2016
      • 2015
      • 2014
      • 2013
  • Courses
    • How to Support Flexible Work as a Manager
    • Hybrid Working Foundations
    • Managing Your Well-Being as a Leader
    • Emerging Leader Foundations
    • Personal Branding
  • Media
    • Podcast
    • Blog
    • Newsletter
    • Articles
    • Interviews
    • Spokesperson
    • Press
    • Quotes
  • Contact

Should Non-Compete Agreements Be Illegal?

February 17, 2013 By Dan Schawbel • 4 Comments • Blog

Many employers force employees to sign non-compete agreements before they start work in order to protect them and their intellectual property. A non-compete is a legal agreement where you agree not to enter into or start a similar profession or trade in competition against your employer. This agreement has been around since before I was born but it’s no longer relevant to the economy we live in. Some of these agreements only last for a year and others last for the entire duration of employment! In today’s economy, these agreements shouldn’t exist and even be illegal.

We are living in a time period now where employment doesn’t last for life and where employees quit full-time jobs to start businesses. In fact, almost all executives I’ve spoken with have agreed that if you stay with one company for life, you gain less experience and are actually less employable. One executive said that he would rather hire someone who has had three different jobs instead of a single job at one company. Executives would also rather hire an entrepreneur over a traditional employee.

The U.S. Bureau of Labor Statistics reports that the average American has nearly eleven jobs between the ages of 18 and 34. The average millennial, ages 19 to 30, has a tenure of two years at their first company. That increases to five for Gen X and seven for Boomers. Since employers can expect employees to constantly be shifting jobs and companies, why should they have the right to force them into different industries and professionals through a non-compete? They shouldn’t! This is especially true since salaries have decreased and the unemployment rate stands at 7.8%. How are employees supposed to maintain a decent standard of living if they are so strapped down? They can’t.

I see non-compete’s fading out, not because employers wants them to but because when the job market returns, employees will more likely work for companies that don’t have such agreements. If two opportunities are the same, wouldn’t you select the one that gives you more flexibility?


Pre-order Dan Schawbel’s highly anticipated new book, Promote Yourself: The New Rules For Career Success.

Subscribe to the Workplace Intelligence Insider Newsletter

The workplace is changing rapidly and will continue to do so. Stay informed to learn about the global trends that matter.

« ROI Nation: Why Your Entire Career Depends on Proving Yourself
10 Lessons I Learned That Changed My Life »

Comments

  1. Frode H says

    February 17, 2013 at 2:55 pm

    What if the company had a support system for people with ideas? Let’s say the company you work for, give you the chance to start your own business? They support you with startup funds and financial resources in return for shares of your company. What if your company owns your company 100 % but they believe in you enough to hire you as a CEO and you get percentage of the shares each year until you own your own company, or until they buy your idea and implement it in their own company – and you can continue to work for them with a good bonus? I think a lot of employees have great ideas that could improve any company, why let them quit and become competition? Help them to make your own company stronger.

    Reply
  2. Zach says

    February 18, 2013 at 7:50 am

    I agree for the most part. I do see them staying around for a purpose not mentioned, intellectual property. While putting non competes in place does negatively impact employees, it helps protect a companies IP. If the employee takes all the IP and starts a company to directly compete, I believe that would be a problem.

    Reply
  3. Jon Payne says

    March 4, 2013 at 9:05 pm

    I think the key is how strict the agreements are. It’s not appropriate for an employee to use company tools or resources, or the company’s brand and proprietary knowledge, to solicit side work that directly competes with the company.

    That said, it’s also a bit far for a company to dictate that their employees can’t do any side-work whatsoever while employed.

    I’d really look at whether it’s “direct competition” versus simply “doing something roughly related in the same general industry”. The latter isn’t competition, and it seems like in your post that is what you have the biggest beef with. Employees often start companies to fill and unmet need – not to directly compete or substitute for the company where they are currently working. If they are doing that, then I don’t have any problem with someone enforcing the non-compete.

    Also, how about just not signing it if you think it’s too over-reaching?

    Reply

Trackbacks

  1. Non-Competes Are the Best Kept Secret to Retaining Your Employees | Workology says:
    May 29, 2019 at 12:52 pm

    […] for companies to use as an intellectual property and company protection tool after reading Dan Schawbel’s article on his opinion that non-competes are on the decline and should be illegal. As an organizational […]

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Workplace Intelligence Weekly

  • Employee Voice is More Important Now Than Ever Before — Here’s Why
  • Attracting and Retaining Talent in an Employee-Driven Market

Read the newsletter archive 

Recent Podcast Episodes

  • Episode 223: Patrick Renna
  • Episode 222: Stephen A. Smith
  • Episode 221: Corey Feldman
  • Episode 220: Natasha Leggero
  • Episode 219: Ricki Lake

5 Questions Podcast Episodes

Episode 223: Patrick Renna

My guest today is actor and film producer, Patrick Renna. Patrick is most known for his role as Ham … Read the rest

Episode 222: Stephen A. Smith

My guest today is sports TV personality, radio host, and author, Stephen A. Smith. Stephen is the … Read the rest

Episode 221: Corey Feldman

My guest today is actor, singer, writer, and producer, Corey Feldman. Corey is best known for his … Read the rest

Older Episodes →

Older Episodes →

Subscribe to the Workplace Intelligence Insider Newsletter

The workplace is changing rapidly and will continue to do so. Stay informed to learn about the global trends that matter.

Copyright © 2023 DanSchawbel.com

Design by Charfish Design

Keep in touch: