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No More Non-Competes - WOW!
Matt Ober
April 25, 2024
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The Non-Competes are going away! Well maybe. I lived through a Non-Compete lawsuit when switching jobs and for some industries, this is a game changer if we get rid of the Non-Competes. Call me skeptical.
When I changed jobs from one hedge fund to another, I went to court over a Non-Compete. I was sued. Long story short, I wouldn't recommend this to anyone. It’s tough. It’s not easy, but some people do win the fight. I was successful, but it took time, money, and a lot of energy.
If the Non-Compete rules are wiped out, that would be a huge change. Hedge funds have spent millions of dollars fighting to enforce this. Some people say there is an island where ex-Citadel people hang out once they leave and are forced to sit out of the industry for 18-24 months.
If you wipe out the Non-Competes it will be really interesting to see how the recruiting world changes. The amount of money people may get paid to switch firms could skyrocket. I wrote a post “Everyone is a free agent” and this would mean people are free agents at all times with no restrictions. All that being said, I have to imagine this law is going to be fought for years. I have to imagine that all the well-paid lawyers at corporations, hedge funds, and companies throughout the United States are looking at loopholes. This is just the beginning of Non-Compete changes. Maybe the non ‘senior level’ or Managing Director level will not have to deal with Non-Competes. Maybe the fast food workers will be able to move jobs with ease as I have heard about fast food workers getting hit with Non-Competes.
Overall exciting to see this happening and it will be very interesting to see how this changes the way firms recruit and retain talent. The bidding war for talent is one thing, but how do you retain employees in a world where there is no Non-Compete?
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