My first non-compete agreement secured me a well-paying job that trained me to become a skilled technician. Thanks to the Federal Trade Commission’s new plan to ban non-compete agreements, low-skilled workers trying to break into the trades won’t have the opportunity I did.
Last week, the FTC stated its intention to ban non-compete agreements in the United States, claiming that doing so would “increase American workers’ earnings between $250 billion and $296 billion per year,” and “expand career opportunities for about 30 million Americans.” While the ban might create opportunities for some workers now, it does not guarantee increased salaries in the trades and could limit opportunities for workers down the road. If lawmakers want to improve opportunities for workers, they must carefully consider the effects this ban would have in the long term.
I was 20 years old, delivering pizzas for $12 an hour, when an acquaintance of mine — a local businessman — approached me with an offer to work as an information technology technician, subcontracting for his company. He offered a decent wage and provided both the training and the necessary tools to do the work. The catch? He had me sign a non-compete agreement, not dissimilar to those signed by some 18 percent of Americans. The agreement stipulated that I wasn’t allowed to pilfer his clients, underbid him on jobs, or work in the local tech industry within two years of leaving my employment with him, or I would face a $10,000 fine — pennies compared
