Fair Employment Alliance

Why do noncompetes exist?

Added by and answered by Becca Quigley

Answer

Noncompetes arose to protect employers’ intellectual property, at a time when there were few protections for companies who poured resources into research and development. Today, such protections exist in other forms (anti-poaching and non-solicitation agreements, better patent law) and employers with little or no proprietary knowledge now commonly use noncompete agreements as a means to limit curtail worker mobility and keep wages artificially low.

 

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