1. lobbyists vying for a company who wants to keep power
2. the legislature having its own vested interest from relationship/deal/lobbying
3. the minority of constituents are the ones who constantly call in and go to townhalls, because they have the time, money, or energy to do so compared to someone who's at work during a townhall.
Best I can do: Non-competes are (possibly) unenforceable anyway, so signing one maybe acts as a value signal for the employee? "I'd have to violate my non-compete, so in order to do that and permanently burn the bridge with my current company, you need to pay me $X + $Y."
Frankly I don't buy it, though, because it assumes too much about the rationality of all actors involved and the savviness of the employee during negotiations.
For many companies, a lot of their value is in their intellectual property. Non-competes exist not because the company will enforce it against employees (they might, but they usually don't), but more as a fig-leaf to potential investors down the line asking about the value of the intellectual property. The argument goes, if someone could easily leave the company with the knowledge earned and go to a competitor, then the investment wouldn't be as valuable.
It makes it possible to confidently buy a business that's mostly or all goodwill. Otherwise the previous owner can simply poach all the clients.
Also lots of jurisdictions allow non-competes as long as the employee is paid for the duration of the non-compete clause. Obvious win there: paid vacation or double up your salary by working for a non-competing firm.
Non-competes on employees without compensation are obviously bad.
It probably depends on the kind of job.
If say Walmart tried to use a noncompete to stop cashiers from going to Target there probably is no reasonable argument in favor of that.
On the other when the employee is a top level executive who knows all the company's trade secrets and all their plans for the next year or so and they want to go to a direct competitor it is hard to see how they won't use that information at the competitor. Even if they scrupulously try to uphold any NDAs they are under and so don't consciously do it stuff will leak.
If the first company sues accusing the second company and/or ex-employee of using such information it can get pretty messy, and consumer judicial resources better used for other things.
A policy then of allowing noncompetes in this situation might overall be beneficial. Top level executives are generally well compensated and should be sufficiently sophisticated financially to understand the consequences of a noncompete and take that into account when deciding on taking the job so having to sit out 6-12 months before taking a directly competing job should not be a serious issue.
Since this is a steelman, what is the rationale for this dynamic needing to be protected? If this employee wants to go to a competitor because they they are getting a better employment deal, why not just try to keep them with your own better employment deal?
Why does it need some forced restriction? I know people aren't perfectly rational market participants, but what besides financial compensation or an enjoyable work environment would compel someone to go to a competitor?
[1] well, as of when I last looked a few years ago
Some community colleges offer technical training, usually in partnership with a certificating body. But in this case the valuation is determined by a mostly independent body.
In other words, a completely useless scare tactic.
The take home is dont take tech jobs in states where non-compete clauses are still legal.
But I do agree in general, never take compensation upon leaving a company, for whatever reason. Then everything is certainly unenforceable.
As for leaving the country... even if a non-compete is found to be enforceable (due to you being self-sufficient, or sufficently compensated), then the scope cannot be country wide. It has to be limited to a particular reasonable geography and a particular reasonable field.
The legislation needs to change. The situation as it stands is ripe for barratry and bullying.
> they have to quit now and spend their savings
Every single job offer I’ve seen with a non-compete is a paid non-compete. You get 100% of your base salary and zero bonus. In industries where non-competes are common, people know this. They have savings to deal with reduced income due to zero bonus. There’s a reason why the non-compete period is colloquially known as garden leave. You have enough savings so that you can literally work on your garden. Companies know they need to be patient and plan for hiring needs far in advance. It’s super predictable.
The first part is probably usually true, because places where non-competes are enforceable generally will not enforce them if they are overly broad.
But for tech workers there are almost always other jobs that the worker can qualify for and pay similarly to their old job but are not covered by the non-compete and then then non-competes do get enforced even though the worker is not independently wealthy.
A fairly recent example [1].
[1] https://callaborlaw.com/blog/former-draftkings-employee-lose...
Non-competes have been heavily limited or outright voided in California. That's an easy and obvious rebuttal to the Silicon Valley argument.
U.S. Chamber of Commerce and business groups file lawsuit challenging FTC noncompete ban - https://www.fmglaw.com/employment-law-blog-us/u-s-chamber-of... - April 26th, 2024
> Less than 24 hours later, the U.S. Chamber of Commerce, Business Roundtable, the Texas Association of Business, and the Longview Chamber of Commerce filed a lawsuit against the FTC in the U.S. District Court for the Eastern District of Texas alleging that the consumer protection agency lacks the authority to issue rules that define unfair methods of competition, and instead, the FTC Act only allows it to bring cases challenging particular practices. The Chamber’s Complaint also contends that even if the FTC possessed such authority, the “noncompete rule would still be unlawful because noncompete agreements are not categorically unlawful under Section 5.” The lawsuit further argues that the rule is “impermissibly retroactive” and reflects an “arbitrary and capricious exercise” of the FTC’s power.
> The Chamber of Commerce is seeking an order “vacating and setting aside the noncompete rule in its entirety” and an order permanently enjoining the FTC from enforcing the rule. The plaintiffs are also seeking an order to delay the effective date and implementation of the noncompete ban until the conclusion of the case.
https://www.governance.fyi/i/192862936/who-pulled-the-ladder... ("Who Pulled the Ladder Away") from Marc Andreessen Is Right That AI Isn't Killing Entry-Level Jobs - https://news.ycombinator.com/item?id=47613752 - April 2026
> The noncompete story is more galling. Legal experts describe the period from 1990 to roughly 2010 as the golden age of noncompete enforcement in America. What started as a tool for protecting senior executives’ trade secrets metastasized into a blanket restriction applied to hourly workers, sandwich shop employees, pet cremation technicians. An estimated 30 million Americans, nearly one in five workers, are bound by a noncompete agreement. These agreements directly suppress the mechanism through which the job ladder operates: they prevent employed workers from accepting better offers.
> The FTC, under the Biden administration, attempted a nationwide ban. The estimated effects were large and specific: $400 to $488 billion in increased wages over the next decade, $524 per worker per year in additional earnings, 8,500 new businesses annually, and 17,000 to 29,000 additional patents per year. The rule was struck down in federal court. The Trump administration formally vacated it in September 2025. The FTC has shifted to case-by-case enforcement, including a February 2026 consent order against a pet cremation company that had imposed blanket noncompetes on 1,780 employees, including hourly laborers and drivers. The bipartisan Workforce Mobility Act, reintroduced in June 2025 by Senators Murphy, Young, Cramer, and Kaine, would ban most noncompetes nationwide. It has been referred to committee. No further action has been taken. Over 150 bills have been introduced in more than 35 states, creating a patchwork that varies by jurisdiction. The patchwork is the opposite of the clear nationwide signal that would restore competitive dynamics.
> The graduate scrolling LinkedIn is not competing against chatbots. She is competing against four decades of eroded mobility, in a labor market where the companies that might hire her face less pressure to do so than at any point since the data began. We all spent two years worrying that AI will trap young workers in obsolete careers, if they every get a career in the first place. Meanwhile, noncompete agreements have been legally trapping workers in underpaying jobs for decades, and we barely noticed.
TLDR Talk is cheap, work and change is hard and painful (broadly speaking). Observe actions, not words.
[1] https://finance.yahoo.com/news/jpmorgan-ceo-jamie-dimon-says...
Related:
"CEO Said a Thing" Journalism - https://news.ycombinator.com/item?id=47577735 - March 2026