Send Noncompete Agreements Back to the Middle Ages
The free flow of employees and ideas encourages innovation. Just ask Silicon Valley.
They forgot to think ahead.
Photographer: Bryan Mitchell/Bloomberg
Noncompete agreements, once restricted to tech workers and high-level executives, have become commonplace among ordinary workers, including security guards, home health aides or hair stylists. If history is any guide, the spread of these contracts could have far-reaching negative implications for the U.S. economy.
Critics oppose requiring ordinary, low-skill workers to comply with these restrictions, arguing they should be reserved for well-compensated employees who benefit from specialized training and investment. But the history of these covenants suggests that there’s a strong economic case for banning them entirely.