Editorial Board
Are Noncompete Deals Good or Bad? Probably Both.
Such restrictions can have significant benefits. They can also be abused. Maybe a one-size-fits-all solution isn’t the thing.
It’s complicated.
Photographer: Graeme Jennings/Washington Examiner/Bloomberg
Noncompete agreements, in which employers place certain restrictions on departing workers, have grown pervasive in recent years, affecting almost 20% of the US workforce. Whether they’re good or bad isn’t straightforward: There are both benefits and drawbacks. Evidence is mixed.
A prudent compromise — pairing freedom to negotiate for high-wage professionals with stronger protections for the more vulnerable — therefore shouldn’t be out of reach.