Re:Non Compete Clauses Reduce Innovation
by cloverich on Monday June 09, 2014 @03:03PM
(#7869887)
Yes - that and any client-based operation where an employee can leave and take their clients with them. The Dentistry field is notorious for this; my wife is barred from working in an entire half of the city for several years after the end of her contract.
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Even in these cases there's a balance of interests that probably needs to be evaluated. A dentist might be responsible for generating substantially all of the value in their customer relationships, and there might be no good public policy case to support noncompetes for them. On the other hand, an insurance brokerage might as a firm be generating 95% of the value in their customer relationships.
Re:Non Compete Clauses Reduce Innovation
by marcosdumay on Monday June 09, 2014 @04:31PM
(#7870318)
At first glance, I agree with you. But then, customers are quite good on knowing what they get value from, and submiting their choice to the direction of the company they currently contract is a sure way to get suboptimal results.
If they get 95% of the value from the company, they simply won't change business that easily.