NY to Ban Noncompetes?

New York might just be the next to ban noncompetes outright, no matter the paycheck. Here's why that's big news, especially for the freight broker industry:

• Did you know? 1 in 5 Americans is tied up by a noncompete.
• The proposed ban could unchain all workers, from baristas to brokers.

Noncompete agreements stop workers from taking new jobs are starting a business for a specified period of time after leaving their employer. Noncompetes in the freight broker world are criticized for being overly broad and stringent and have been the target of notable legal challenges.

TQL: Jacob Patterson was sued by his former employer, Total Quality Logistics over claims that he violated his noncompete twice. Patterson, in turn, filed a lawsuit against TQL.

Governor Kathy Hochul is mulling over a bill that could either impose a noncompete cap for those earning over $250,000 or eliminate the clause entirely. Supporters of the ban say it could help keep New York workers in New York and encourage innovation and business growth.

Broader Context: The FTC is considering national regulations on noncompete agreements.

So, we wait to see what's next. A total ban could keep businesses and jobs local. But with the clock ticking, the pressure's on for a decision that could set a national precedent.

Source: MorningBrew