The major league baseball reserve clause was banned by the U.S. Congress in 1998. Since 2000, however, the employee non-compete agreement has spread to cover 30 million U.S. workers. It does not prevent an employee from leaving their job, but, like the reserve clause, it causes many workers to change their careers. This presentation summarizes the arguments for and against the non-compete, and its widening application, which a growing number of policy-makers, employees, and businesses are questioning.
While trying to satisfy one federal law, employers may inadvertently violate another. For example, an employer who seeks to verify an individual's eligibility to work in the United States might accidentally step over a line and be found guilty of discrimination. If this happens to you, you may end up paying penalties. Here's the story.
Provide updates on CAN-SPAM, keyword search liability and the recent FTC affiliate marketing rules to identify how audience members can ensure that their campaigns produce results, not liabilities.
While trying to satisfy one federal law, employers may inadvertently violate another. For example, an employer who seeks to verify an individual's eligibility to work in the United States might accidentally step over a line and be found guilty of discrimination. If this happens to you, you may end up paying penalties. Here's the story.
Provide updates on CAN-SPAM, keyword search liability and the recent FTC affiliate marketing rules to identify how audience members can ensure that their campaigns produce results, not liabilities.
Cover Your Ass(ets): Online Advertising Compliance UpdateAffiliate Summit
An update on the latest rules and regulations put forth by the FTC, FCC, federal government and international governing bodies. A can’t miss for mobile marketers and anyone who does business online.
Experience level: Beginner
Target audience: Affiliates/Publishers, Merchants/Advertisers, Networks
Niche/vertical: Compliance
John Monarch, CEO, Connexus Inc. (Twitter @papajohn56) (Moderator)
Aaron Kelly, Attorney, Kelly / Warner, PLLC (Twitter @aaronklaw)
CJ Montgomery, Attorney at Law, Online Legal Group
2017 Legal Update on Digital Accessibility Cases with Lainey Feingold3Play Media
This webinar will be presented by Lainey Feingold, an internationally recognized disability rights lawyer and pioneer of Structured Negotiation known for negotiating landmark accessibility agreements. In this webinar, Lainey will take us through key cases, government agency activity, settlements, and other developments in the digital accessibility legal landscape since her last 3Play Media webinar in September 2016.
Each U.S. state creates its own corporate law, and entrepreneurs can choose to incorporate in any state. This choice creates a market for corporate law, a unique dynamic that may be good or bad for shareholders, stakeholders, and society at large, depending on whether the market for corporate law is a "race to the top" or a "race to the bottom."
Chris Roush presented "Investigating Private Companies" at the Donald W. Reynolds National Center of Business Journalism's free workshop, "Investigating Private Companies and Nonprofits."
For more information about free training for business journalists, please visit businessjournalism.org.
eth 321,uop eth 321 new,uop eth 321 new complete course,uop eth 321 new entire course,uop eth 321 new week 1,uop eth 321 new week2,uop eth 321 new week 3,uop eth 321 new week 4,uop eth 321 new week 5, uop eth 321 new week 6,uop eth 321 new tutorials,uop eth 321 new assignments,eth 321 help
Speech to Lincoln MA Town Meeting March 24, 2012 in support of constitutional amendment to eliminate the right of corporations to the rights in the Constitution that belong to "the people."
a) Maintaining approximate compensation parity among employees within the same employment categories (for example, among junior software engineers);
b. Maintaining certain compensation relationships among employees across different employment categories (for example, among junior software engineers relative to senior software engineers)
Non-Compete and Trade Secrets Developments and Trends: A Year in Review and L...Epstein Becker Green
Epstein Becker Green Webinar - "Non-Compete and Trade Secrets Developments and Trends: A Year in Review and Looking Forward" - with Attorneys David J. Clark, J. William Cook, Aime Dempsey - January 29, 2019.
Issues arising from employees and information moving from one employer to another continue to proliferate and provide fertile ground for legislative action and judicial decisions. Many businesses increasingly feel that their trade secrets or client relationships are under attack by competitors—and even, potentially, by their own employees. Individual workers changing jobs may try to leverage their former employer’s proprietary information or relationships to improve their new employment prospects, or may simply be seeking to pursue their livelihood.
How can you put yourself in the best position to succeed in a constantly developing legal landscape?
Whether you are an employer drafting agreements and policies or in litigation seeking to enforce or avoid them, you will want to know about recent developments and what to expect in this area.
Join Epstein Becker Green attorneys David J. Clark, William Cook, and Aime Dempsey for a webinar providing insights into recent developments and expected trends in the evolving legal landscape of trade secret and non-competition law.
Visit https://www.ebglaw.com/events/non-compete-and-trade-secrets-developments-and-trends-a-year-in-review-and-looking-forward/
These materials have been provided for informational purposes only and are not intended and should not be construed to constitute legal advice. The content of these materials is copyrighted to Epstein Becker & Green, P.C. ATTORNEY ADVERTISING.
“Covenants to not compete” with former employers (“noncompetes”) are increasingly required from a wide range of employees, including camp counselors, hairstylists and sandwich-makers. At least half of high-technology employees are required to sign them.
Noncompetes have long been a part of the contract law of most states. Only a few states, like California, do not enforce them.
Noncompetes are increasingly criticized, however, as suppressing industry growth and employee mobility and prosperity. Congress has demanded that the Federal Trade Commission evaluate the fairness of noncompetes. Massachusetts, Virginia and Minnesota have considered bans on noncompetes, with the support of entrepreneurs and venture capitalists, as well as former employees bound by these agreements.
Pro-competition public policies limit the enforcement of noncompetes. Employees thinking of starting a new job or business should consider these limitations as they prepare for their new (self) employment. They should ask themselves these questions:
What should I do about my existing employer's noncompete agreement, if I am considering leaving to join another employer or to start a new company?
What should I ask a prospective employer about noncompetes before I agree to a new job, or begin work?
What are the public policy limitations on noncompete agreements if they cannot be avoided in current or prospective employment?
What are the terms of a noncompete agreement that might be open to negotiation, and what should I ask for?
If I am prevented from doing the kind of work I want to do because of a noncompete agreement with a former employer, do I have any options?
e eBook Collection643Part The Employer-Employee Relationsh.docxsagarlesley
e eBook Collection
643
Part
>> The Employer-Employee Relationship
Consistent with the property theme of
this text, it is important to understand
that employment and labor laws affect
the property interest you have in selling your
labor. This final section discusses the complexity
of those relationships. As you study these chapters,
consider the historical development of the
law, including how it must continually evolve
to address technology developments, changing
social values and economic issues affecting the
workplace. Employment and labor laws reflect
the constant need for balance between the rights
and responsibilities of employers and employees.
Because the United States enjoys a diverse
population, it is important to ensure that workers
are not discriminated against, including in
the hiring, promoting, and firing process. Chapter
20 details federal laws prohibiting workplace
discrimination, specifically discussing the prohibitions
on employment discrimination based on
race, sex, national origin, color, pregnancy, age,
and disabilities. This chapter focuses on what constitutes
illegal discrimination in the workplace,
including employment practices—even those that
may seem well intentioned on their face—that
may be challenged as discriminatory. In addition
to federal protections, this chapter notes that
state laws may offer additional protection against
workplace discrimination. Taken together, these
laws form the framework for fair competition in
a workplace free of unlawful discrimination.
Chapter 21 describes other major employment
laws, including rules regarding minimum
wage and overtime, mass layoffs, family and
medical leave, workplace safety & workers’
compensation, as well as the limits of employee
privacy at work. All of these laws provide important
protections for workers and further define
the employer–employee relationship. The scope
of the employment-at-will doctrine is also presented,
along with ways an employer can protect
itself from an unjustified lawsuit.
The final chapter in the text, Chapter 22,
focuses on labor laws that permit employees to
organize their labor through unions. Although
they have been met with challenges in the twentyfirst
century, unions continue to play an important
role in the U.S. labor market. The development of
labor law in the U.S. illustrates the long history of
seeking to protect workers. This chapter presents
the major labor laws and helps students to identify
unfair labor practices by management and
unions. This chapter also incorporates current
issues important to unions. Many unions maintain
active political agendas on behalf of their
members, including the role of being high-profile
advocates during political elections and on laborrelated
topics such as international trade. Labor
advocates are very vocal about the kinds of provisions
that could be incorporated into trade agreements
to allow U.S. workers to compete on a
level playing field. For example, a number of free
trade agreements di ...
Cover Your Ass(ets): Online Advertising Compliance UpdateAffiliate Summit
An update on the latest rules and regulations put forth by the FTC, FCC, federal government and international governing bodies. A can’t miss for mobile marketers and anyone who does business online.
Experience level: Beginner
Target audience: Affiliates/Publishers, Merchants/Advertisers, Networks
Niche/vertical: Compliance
John Monarch, CEO, Connexus Inc. (Twitter @papajohn56) (Moderator)
Aaron Kelly, Attorney, Kelly / Warner, PLLC (Twitter @aaronklaw)
CJ Montgomery, Attorney at Law, Online Legal Group
2017 Legal Update on Digital Accessibility Cases with Lainey Feingold3Play Media
This webinar will be presented by Lainey Feingold, an internationally recognized disability rights lawyer and pioneer of Structured Negotiation known for negotiating landmark accessibility agreements. In this webinar, Lainey will take us through key cases, government agency activity, settlements, and other developments in the digital accessibility legal landscape since her last 3Play Media webinar in September 2016.
Each U.S. state creates its own corporate law, and entrepreneurs can choose to incorporate in any state. This choice creates a market for corporate law, a unique dynamic that may be good or bad for shareholders, stakeholders, and society at large, depending on whether the market for corporate law is a "race to the top" or a "race to the bottom."
Chris Roush presented "Investigating Private Companies" at the Donald W. Reynolds National Center of Business Journalism's free workshop, "Investigating Private Companies and Nonprofits."
For more information about free training for business journalists, please visit businessjournalism.org.
eth 321,uop eth 321 new,uop eth 321 new complete course,uop eth 321 new entire course,uop eth 321 new week 1,uop eth 321 new week2,uop eth 321 new week 3,uop eth 321 new week 4,uop eth 321 new week 5, uop eth 321 new week 6,uop eth 321 new tutorials,uop eth 321 new assignments,eth 321 help
Speech to Lincoln MA Town Meeting March 24, 2012 in support of constitutional amendment to eliminate the right of corporations to the rights in the Constitution that belong to "the people."
a) Maintaining approximate compensation parity among employees within the same employment categories (for example, among junior software engineers);
b. Maintaining certain compensation relationships among employees across different employment categories (for example, among junior software engineers relative to senior software engineers)
Non-Compete and Trade Secrets Developments and Trends: A Year in Review and L...Epstein Becker Green
Epstein Becker Green Webinar - "Non-Compete and Trade Secrets Developments and Trends: A Year in Review and Looking Forward" - with Attorneys David J. Clark, J. William Cook, Aime Dempsey - January 29, 2019.
Issues arising from employees and information moving from one employer to another continue to proliferate and provide fertile ground for legislative action and judicial decisions. Many businesses increasingly feel that their trade secrets or client relationships are under attack by competitors—and even, potentially, by their own employees. Individual workers changing jobs may try to leverage their former employer’s proprietary information or relationships to improve their new employment prospects, or may simply be seeking to pursue their livelihood.
How can you put yourself in the best position to succeed in a constantly developing legal landscape?
Whether you are an employer drafting agreements and policies or in litigation seeking to enforce or avoid them, you will want to know about recent developments and what to expect in this area.
Join Epstein Becker Green attorneys David J. Clark, William Cook, and Aime Dempsey for a webinar providing insights into recent developments and expected trends in the evolving legal landscape of trade secret and non-competition law.
Visit https://www.ebglaw.com/events/non-compete-and-trade-secrets-developments-and-trends-a-year-in-review-and-looking-forward/
These materials have been provided for informational purposes only and are not intended and should not be construed to constitute legal advice. The content of these materials is copyrighted to Epstein Becker & Green, P.C. ATTORNEY ADVERTISING.
“Covenants to not compete” with former employers (“noncompetes”) are increasingly required from a wide range of employees, including camp counselors, hairstylists and sandwich-makers. At least half of high-technology employees are required to sign them.
Noncompetes have long been a part of the contract law of most states. Only a few states, like California, do not enforce them.
Noncompetes are increasingly criticized, however, as suppressing industry growth and employee mobility and prosperity. Congress has demanded that the Federal Trade Commission evaluate the fairness of noncompetes. Massachusetts, Virginia and Minnesota have considered bans on noncompetes, with the support of entrepreneurs and venture capitalists, as well as former employees bound by these agreements.
Pro-competition public policies limit the enforcement of noncompetes. Employees thinking of starting a new job or business should consider these limitations as they prepare for their new (self) employment. They should ask themselves these questions:
What should I do about my existing employer's noncompete agreement, if I am considering leaving to join another employer or to start a new company?
What should I ask a prospective employer about noncompetes before I agree to a new job, or begin work?
What are the public policy limitations on noncompete agreements if they cannot be avoided in current or prospective employment?
What are the terms of a noncompete agreement that might be open to negotiation, and what should I ask for?
If I am prevented from doing the kind of work I want to do because of a noncompete agreement with a former employer, do I have any options?
e eBook Collection643Part The Employer-Employee Relationsh.docxsagarlesley
e eBook Collection
643
Part
>> The Employer-Employee Relationship
Consistent with the property theme of
this text, it is important to understand
that employment and labor laws affect
the property interest you have in selling your
labor. This final section discusses the complexity
of those relationships. As you study these chapters,
consider the historical development of the
law, including how it must continually evolve
to address technology developments, changing
social values and economic issues affecting the
workplace. Employment and labor laws reflect
the constant need for balance between the rights
and responsibilities of employers and employees.
Because the United States enjoys a diverse
population, it is important to ensure that workers
are not discriminated against, including in
the hiring, promoting, and firing process. Chapter
20 details federal laws prohibiting workplace
discrimination, specifically discussing the prohibitions
on employment discrimination based on
race, sex, national origin, color, pregnancy, age,
and disabilities. This chapter focuses on what constitutes
illegal discrimination in the workplace,
including employment practices—even those that
may seem well intentioned on their face—that
may be challenged as discriminatory. In addition
to federal protections, this chapter notes that
state laws may offer additional protection against
workplace discrimination. Taken together, these
laws form the framework for fair competition in
a workplace free of unlawful discrimination.
Chapter 21 describes other major employment
laws, including rules regarding minimum
wage and overtime, mass layoffs, family and
medical leave, workplace safety & workers’
compensation, as well as the limits of employee
privacy at work. All of these laws provide important
protections for workers and further define
the employer–employee relationship. The scope
of the employment-at-will doctrine is also presented,
along with ways an employer can protect
itself from an unjustified lawsuit.
The final chapter in the text, Chapter 22,
focuses on labor laws that permit employees to
organize their labor through unions. Although
they have been met with challenges in the twentyfirst
century, unions continue to play an important
role in the U.S. labor market. The development of
labor law in the U.S. illustrates the long history of
seeking to protect workers. This chapter presents
the major labor laws and helps students to identify
unfair labor practices by management and
unions. This chapter also incorporates current
issues important to unions. Many unions maintain
active political agendas on behalf of their
members, including the role of being high-profile
advocates during political elections and on laborrelated
topics such as international trade. Labor
advocates are very vocal about the kinds of provisions
that could be incorporated into trade agreements
to allow U.S. workers to compete on a
level playing field. For example, a number of free
trade agreements di ...
Baseball owners still 'reserving' right to underpay minor leaguersAdam Glazer
During spring training last year, this column detailed a class-action suit filed by three ex-minor leaguers alleging Major League Baseball paid them less than fast-food workers.
Unrepresented by a labor union, minor leaguers toil 50 to 70 hours per week through a five-month season for subminimum wage with no overtime and no compensation during spring training, instructional leagues or winter leagues.
Minor leaguers must serve a minimum of seven seasons to gain eligibility for free agency. And the few ballplayers who hang around long enough to meet this criterion are unlikely to have a major league future, inherently reducing their value.
BHR 3565, Employment Law 1 Course Learning Outcomes fMargaritoWhitt221
BHR 3565, Employment Law 1
Course Learning Outcomes for Unit VI
Upon completion of this unit, students should be able to:
6. Explain the authority of unions in the workplace.
6.1 Outline seven different areas or processes in collective bargaining that are of interest to you.
Course/Unit
Learning Outcomes
Learning Activity
6 Unit Lesson Chapter 16 and 17
6.1
Unit Lesson
Chapter 15 and 17
Unit VI PowerPoint Presentation
Reading Assignment
Chapter 15: Collective Bargaining
Chapter 16: Picketing and Strikes
Chapter 17: The Enforcement and Administration of the Collective Agreement, pp. 549-567, 577
Unit Lesson
Studying the history of labor laws in the United States is a bit like looking at a pendulum in a clock – it swings
one way until it reaches the extreme of its movement, and then it moves back the other way. By the beginning
of the 20th century, employers had become powerful as a result of the Industrial Revolution, and employees
were often at the mercy of the policies that employers instituted and the wages that employers were willing to
pay. As you can imagine, that power in the hands of employers sometimes led to employers taking advantage
of and even abusing employees. In 1932, Congress passed the Norris-LaGuardia Act and in 1935, the
Wagner Act (also called the National Labor Relations Act or NLRA).
These acts declared certain actions by employers to be illegal and empowered unions to form to represent
workers in dealing with employers, thus limiting and, in some cases eroding, the power that employers had
exercised over employees. Although the increased power of unions was, in theory, good for employees, in too
many cases, unions used their new power to improperly convince employees to allow the unions to represent
them and to improperly force employers to make concessions to employees.
There are still cases in which either management (employers) or labor (unions) allege that the other has
violated some federal law that establishes what management and labor cannot do in dealing with employees
and each other. However, the federal law framework for labor relations is now in place, and there are other
federal laws that influence the relationship between employers and employees.
Collective Bargaining
Collective bargaining is the exertion of force by employees and employers on each other to force an
agreement (Cihon & Castagnera, 2017). Is collective bargaining a right or a privilege? Have unions helped the
economy or hurt it? Do unions help the worker or politicians? Is the United States going broke because of
unions and collective bargaining? Do unions promote market inefficiency in workers? These are questions
that many are asking. The answers are not clear.
UNIT VI STUDY GUIDE
Collective Bargaining
BHR 3565, Employment Law 2
UNIT x STUDY GUIDE
Title
Collective bargaining gives workers power in numbers to negotiate for increased wages, benefi ...
This comprehensive program covers essential aspects of performance marketing, growth strategies, and tactics, such as search engine optimization (SEO), pay-per-click (PPC) advertising, content marketing, social media marketing, and more
New Explore Careers and College Majors 2024.pdfDr. Mary Askew
Explore Careers and College Majors is a new online, interactive, self-guided career, major and college planning system.
The career system works on all devices!
For more Information, go to https://bit.ly/3SW5w8W
The Impact of Artificial Intelligence on Modern Society.pdfssuser3e63fc
Just a game Assignment 3
1. What has made Louis Vuitton's business model successful in the Japanese luxury market?
2. What are the opportunities and challenges for Louis Vuitton in Japan?
3. What are the specifics of the Japanese fashion luxury market?
4. How did Louis Vuitton enter into the Japanese market originally? What were the other entry strategies it adopted later to strengthen its presence?
5. Will Louis Vuitton have any new challenges arise due to the global financial crisis? How does it overcome the new challenges?Assignment 3
1. What has made Louis Vuitton's business model successful in the Japanese luxury market?
2. What are the opportunities and challenges for Louis Vuitton in Japan?
3. What are the specifics of the Japanese fashion luxury market?
4. How did Louis Vuitton enter into the Japanese market originally? What were the other entry strategies it adopted later to strengthen its presence?
5. Will Louis Vuitton have any new challenges arise due to the global financial crisis? How does it overcome the new challenges?Assignment 3
1. What has made Louis Vuitton's business model successful in the Japanese luxury market?
2. What are the opportunities and challenges for Louis Vuitton in Japan?
3. What are the specifics of the Japanese fashion luxury market?
4. How did Louis Vuitton enter into the Japanese market originally? What were the other entry strategies it adopted later to strengthen its presence?
5. Will Louis Vuitton have any new challenges arise due to the global financial crisis? How does it overcome the new challenges?
The Reserve Clause and Employee Non-Compete Agreements - Will the Infamous Relic of Baseball's Past Make a Comeback in Your Future?
1. Will Employee Non-Compete
Agreements Fade Away Like the
Baseball Reserve Clause?
30 million Americans are now required to sign
employee non-compete agreements. These
agreements, like the baseball reserve clause,
limit an employee’s ability to leave a job to work for
potential competitors.
Charles H. Martin, JD, MBA
@Every1sGuide, #LawyerballLaw,
www.Lawyerball.com, www.facebook.com/
Every1sGuidetoElectronicContracts
2. For 100 Years, Baseball Clubs Could Stop Their
Players From Ever Playing for Another Club
“(It’s) outrageous.…I sign a contract
with a club, and they can hold me
forever...or so long as I want to play
ball.” - George Wright, Providence
Grays shortstop, 1884
In 1879, the National League created
the first “reserve clause” rule. It
prevented designated players from
playing for another team without
their club’s permission.
The American Association agreed to
respect the rule in 1882. It was
written into all player contracts in
1887. It was a part of the AL-NL
“Peace Agreement” of 1903.
3. Baseball’s 1922 Supreme Court Antitrust Exemption
Protected the Reserve Clause from Court Challenge
“The giving of exhibitions of baseball…would
not be called trade or commerce.... and the
restrictions by contract that prevented the
plaintiff from getting players to break their
bargains and the other conduct...were not an
interference with commerce among the states.”
– Justice Oliver Wendell Holmes, Jr.
In 1912, baseball contracts first specified
that player salaries were paid in part for
the club’s right to unilaterally extend a
player’s contract, requiring him to work
only for his club. In 1976, the Major League
Baseball Collective Bargaining Agreement
negotiated the first rules for player free
agency. The “Curt Flood Act of 1998”
finally changed federal antitrust law to
prohibit the reserve clause.
4. An Employee Non-Compete Agreement is a
Reserve Clause for Employees
Employee non-competes are now under
scrutiny, because they appear to 1)
suppress wages, 2) reduce worker
mobility, and 3) reduce innovation,
entrepreneurship, and economic growth.
Contract law is state law, but Congress
can enact laws regarding contracts in
interstate commerce.
Employee non-compete agreements
have long been enforceable in most
states. In practice, however, non-
competes were, until recently, enforced
mainly against engineers or similar
employees with specialized technical
knowledge. Most states require them to
be “reasonable” in work, time, and
geographic scope.
5. Employee Non-Competes Are Spreading to Non-
Technical Workers Who Don’t Know Trade Secrets
Lawsuits to enforce employee non-compete
agreements rose 61% from 2002 to 2013. A
2015 study suggested that nearly 30
million U.S. workers, almost 18% of all
employees, were bound by non-
competes.
The two main justifications for non-
competes are 1) protection of trade
secrets and confidential information from
disclosure to competitors, and 2)
protection of investment in employee
training from benefitting competitors.
Only 24% of all U.S. workers studied
reported having access to trade secrets,
including fewer than half of the 18%
bound by non-competes. Non-competes
have been enforced against fast-food
deliverers, hair dressers, camp counselors,
and journalists.
6. Non-Competes Reduce Employee Wages at Career
Starts and Over Time
A 2016 U.S. Treasury Department
study found that, in states with
stricter non-compete enforcement,
initial wages were 1.4% lower; and
after a forty-year career, wages
were 10% lower than in states with
maximum non-compete
enforcement, compared to states
with minimum enforcement.
Non-competes appear to reduce
wages and wage growth, because 1)
employees often begin work without
knowing they will be bound by non-
competes, and are unable to bargain
for them, and 2) worker mobility is
reduced by non-competes without
increased training in return.
7. Even in California, Non-Competes Are Imposed, and
Companies Have Circumvented the State Ban
California has prohibited non-compete
agreements since enactment of its 1876
Constitution. Nevertheless, in 2015 Adobe,
Apple, Google, and Intel settled for
$415,000,000, a class-action lawsuit alleging
secret agreements among them to not recruit
or hire each other’s employees in violation of
federal and state antitrust laws, the
California ban on employee non-compete
agreements, and state unfair competition
law. The alleged purpose of the agreements
was to fix and suppress employee
compensation.
A 2015 national survey indicated that, despite
the California non-compete ban, 19% of
California workers are bound by non-competes,
and about 37% of workers are asked to sign
non-competes only after taking a job.
8. Non-Competes Reduce Innovation,
Entrepreneurship and Economic Growth
Studies have shown that worker
mobility within an area of similar
employers quickly spreads
expertise, and improvements in
technology and work practices.
This mobility effect, along with stock
options and venture capital, has
caused “easy mobility” states
that prohibit non-competes, like
California, to surpass “difficult
mobility” states, like
Massachusetts, in the
development of industry clusters,
like Silicon Valley, which depend
on quick dissemination of
knowledge among competing firms.
0
50,000
100,000
150,000
200,000
250,000
300,000
1959
1965
1970
1975
1980
1985
1990
2003
2007
Number of
High-Tech
Jobs
High-Tech Jobs in Silicon Valley
v. Route 128 – 1959 to 2007
Silicon Valley
Route 128
9. Detroit Boomed After Michigan Banned
Non-Compete Agreements
0
20
40
60
80
1895 1910 1925 1940 1955 1970
Percent
Spinoffs as Percentage of U.S. Car
Makers Since 1905 Michigan Ban on
Non-Compete Agreements
In 1905, when 25% of car makers were
located in Detroit, Michigan passed a
law prohibiting employee non-compete
agreements. By 1938, two-thirds of all
automakers were located in Detroit, with
many “spin-outs” founded by former
employees, such as Dodge (from Ford)
and Chevrolet, Chrysler and
Lincoln (from GM). Spin-outs grew to 60%
of car makers by 1938, before stabilizing at
40% in the 1960s. After the 1985 repeal
of the Michigan non-compete ban,
the job mobility of Michigan
inventors fell by 8.1% compared
to some states with
non-compete bans, by 15.4%
for inventors with firm-specific skills,
and by 16.2% for inventors with
technology-specialized skills.
10. The Baseball Reserve Clause Comparison
From 1879 to 1999
0
100
200
300
1920 1950 1970 1985 1994 2001
MLB Franchise Values and Salaries
Pre and Post-1976 Free Agency
Average
MLB Salary
($000)
Average
MLB
Franchise
Value
($Million)
In 1976, the first MLB Collective
Bargaining Agreement allowed veteran
players to become free agents. The reserve
clause was later banned by the federal “Curt
Flood Act of 1998”, named in honor of the first
modern player to challenge the legality of
baseball’s version of the employee non-
compete agreement.
Despite predictions of doom, the era of
free agency has seen MLB franchise
values increase despite the increase in
player salaries, compared with earlier
salaries, and as a percentage of revenues. In
2016, the average MLB franchise value is
$1.2 billion (22 times the 1976 value), while
the average MLB player salary is $4.25 million
(82 times the 1976 salary).
11. Recent State Non-Compete Reforms
In 2015, Hawaii banned new non-
compete and non-solicitation
agreements for high-tech employees,
New Mexico limited them for health
care workers, and Nebraska refused
to enforce an overbroad non-compete.
In 2016, Utah limited its enforcement
of new non-competes to a one-year
period, and Oregon allowed only non-
competes disclosed before
employment begins, with 18 month
maximum terms and low-income limits.
Facing New York allegations that their
non-competes placed “undue hardship”
on employees, the publisher Law360,
and the sandwich chain Jimmy John’s
agreed to abandon them. New York will
also not enforce them against workers
fired without cause.
12. State and Federal Legislation Introduced To Ban or
Limit Employee Non-Competes
Several states have recently introduced
legislation to limit or ban non-competes
generally (Massachusetts, Virginia,
North Carolina, Minnesota). Other
states have proposed or enacted laws to
prevent enforcement against employees
without knowledge of trade secrets
(Washington, Idaho), or with incomes
below a certain threshold (Oregon, New
Jersey, Maryland), or who did not receive
their agreements prior to starting
employment (Oregon, New Hampshire).
In response to publicity concerning
sandwich deliverymen bound to non-
competes by Jimmy John’s franchisees, a
bill was introduced in Congress to
prohibit their enforcement against workers
making less than $15 per hour.
13. The Need for Further Non-Compete Reform
On May 5, 2016, the White House
released its analysis of employee
non-compete agreements and
their economic impact, based on a
Treasury Department study.
The analysis calls for further
research and for state non-
compete legal reform, such as
requiring early employer disclosure
of non-competes, and their impact, at
the time of a job offer, invalidation of
overbroad non-competes, and
requiring employee benefits in return
for signing non-competes.
On May 11, 2016, President Obama
signed into law the “Defend Trade
Secrets Act of 2016”, strengthening
federal protections of trade secrets
through access to federal courts and
civil damages. It reduces the need
for state law non-compete protection.
14. For More and Continuing Information
See www.charleshmartin.com.
See www.lawyerball.com
See http://www.amazon.com/-
/e/B00E8NSUCU
Editor's Notes
The 1876 National League Constitution, and the 1903 American League – National League “Peace Agreement” are available at the Resources Page of my website, www.lawyerball.com.
The federal “Curt Flood Act of 1998”, and the current MLB Collective Bargaining Agreement are available on the Resources Page of www.lawyerball.com.
See Non-Compete Agreements: Analysis of the Usage, Potential Issues and State Responses, May 5, 2016, The White House (“White House Analysis”), for a summary of academic research on the effects of employee non-compete agreements at https://www.whitehouse.gov/sites/default/files/non-competes_report_final2.pdf.
See Starr, Evan, Bishara and Prescott, “Noncompetes in the U.S. Labor Force”, 2015 tentative survey findings on prevalence of non-competes, summarized in White House Analysis. See “Noncompete Clauses Increasingly Pop Up in Array of Jobs”, by Steven Greenhouse, New York Times, June 8, 2014 at http://nyti.ms/1G4iBgj.
See “Non-compete Contracts: Economic Effects and Policy Implications”, Office of Economic Policy, U.S. Department of the Treasury, March 2016, at http://bit.ly/29wUDDx.
See In Re: High-Tech Employee Antitrust Litigation, Case No. 11-CV-02509-LHK, Order Granting Plaintiffs’ Motion for Preliminary Approval of Class Action Settlement, United States District Court, Northern District of California, March 3, 2015. See “Non-compete Contracts: Economic Effects and Policy Implications”, Office of Economic Policy, U.S. Department of the Treasury, March 2016, at http://bit.ly/29wUDDx.
High-Tech Jobs –See "Inside-Out: Regional Networks and Industrial Adaptation in Silicon Valley and Route 128", AnnaLee Saxenian, May 1996, Cityscape; “North America’s High-Tech Economy”, Ross C. DeVol, Kevin Klowden, Armen Bedroussian, Benjamin Yeo, Milken Institute, 2009; “Legal Infrastructure of High Technology Districts”, Ronald J. Gilson, N.Y.U. Law Review, June 1999.
Detroit Spin-offs and Patents – “Explaining an Industry Cluster”, David A. Price and Zhu Wang, Federal Reserve Bank of Richmond Economic Brief, October 2012; “Mobility, Skills, and the Michigan Non-Compete Experiment, Matt Marx, Deborah Strumsky and Lee Fleming, Management Science, June 2009.
MLB Average Franchise Values and Player Salaries – See “The Economic History of Major League Baseball”, Michael J. Haupert, Economic History Association, EH.net; Forbes – The Business of Baseball, March 29, 2016.
See “Employee Noncompetes – A State by State Survey” by Beck Reed Riden LLP at http://www.beckreedriden.com/50-state-noncompete-chart/. See “Sandwich Chain Jimmy John’s to Drop Noncompete Clauses from Hiring Packets” by Aruna Viswanatha, June 21, 2016, Wall Street Journal at http://on.wsj.com/29xVWDU, and “Legal Publisher in Settlement to Drop Noncompete Agreements for Employees” by Aruna Viswanatha, June 15, 2016, Wall Street Journal at http://on.wsj.com/29qsjDO.
Numerous states limit or ban by statute the enforcement of non-competes against certain occupations, such as health care providers (Texas, Colorado, Delaware) as a matter of public policy. Some court decisions also limit enforcement if the term of employment is not extended after signing a non-compete (Illinois), or if a worker is fired without cause (Montana, New York).
See “Jimmy John’s Makes Low-Wage Workers Sign ‘Oppressive’ Noncompete Agreements”, by Dave Jamieson, The Huffington Post, October 15, 2014, at http://huff.to/1DbbuR9. See http://www.franken.senate.gov/files/documents/150604MOVEsummary.pdf for the proposed federal bill.
See Non-Compete Agreements: Analysis of the Usage, Potential Issues and State Responses, May 5, 2016, The White House (“White House Analysis”), for a summary of academic research on the effects of employee non-compete agreements at https://www.whitehouse.gov/sites/default/files/non-competes_report_final2.pdf.
See the Defend Trade Secrets Act of 2016 at https://www.congress.gov/bill/114th-congress/senate-bill/1890/text.