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Is A Ban On Non-Competes Supported By Empirical Evidence?, Sarah Oh Lam, Thomas Lenard, Scott Wallsten
Is A Ban On Non-Competes Supported By Empirical Evidence?, Sarah Oh Lam, Thomas Lenard, Scott Wallsten
Fordham Journal of Corporate & Financial Law
The U.S. Federal Trade Commission (FTC) has proposed a rule to declare virtually all non-compete agreements unfair methods of competition under Section 5 of the FTC Act and therefore, illegal. However, the empirical literature on non-compete agreements cited by the FTC in its Notice for Proposed Rulemaking (“NPRM”) shows mixed results on earnings, job creation, firm formation, entrepreneurship, training, investment, and firm value. Evidence in other current studies also does not support an economy-wide ban. The FTC concludes that the proposed rule would yield net benefits even though by its own admission it lacks the information necessary to conduct a …
Independent Contractors & Noncompetition Covenants: A Modified Approach, Matthew J. Sandor
Independent Contractors & Noncompetition Covenants: A Modified Approach, Matthew J. Sandor
Fordham Law Review
This Note examines the way in which noncompetition covenants should be applied to independent contractors. An increasing portion of the American labor force is now employed outside the traditional employer-employee context. Today, nearly sixty million American workers are categorized as independent contractors, with many subject to noncompetition covenants that restrict their ability to participate in the labor market freely. In response to this dramatic change, state courts and legislatures have used a variety of approaches in enforcing noncompetes in the independent contractor context. These approaches run the gamut, with some states liberally construing noncompetes against independent contractors while others have …