I’ve talked about the injustice of non-compete agreements at the lower end of the labor market a few times before. It’s worth revisiting the point once again to note its ubiquity and the utter injustice of it.
A recent White House report found that 18% of American workers are currently restricted by non-compete clauses. If you’ve never signed one–or even if you have and had no idea what it was–a non-compete is a legal agreement that prevents an employee from leaving a job at one company and taking a similar one with a competing company, for a specified period of time.
Of the workers who have signed non-competes, fewer than half say they had access to trade secrets that a potential rival company could take advantage of. What’s more, 37% of workers say they have signed non-compete agreements at some point in their careers.
While engineering and computer/mathematical occupations have the highest prevalence of non-competes, the agreements aren’t exclusive to highly-skilled professions. For instance, 15% of workers without four-year college degrees are subject to non-competes, while 14% of employees earning less than $40,000 a year have signed a non-compete. That’s despite the fact that employees in both sectors are about half as likely to possess trade secrets than more highly educated and higher-earning counterparts in the work force.
Of course the most famous example of this is Jimmy John’s, which clearly is concerned about it’s $7.50 an hour employees revealing deep secrets when they go work for Subway later. Or, as is certainly the case, the point is to control workers and nothing more.