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Comments on Non-competes from Forrester Research

You can find plenty of press coverage about why non-competes ostensibly thwart recruiting top talent to start-ups. What you don’t hear about is how non-competes ultimately help new and established companies alike to retain the talent they’ve invested in, further nurtured and who have become star employees due to their rewarding tenure and success. How can today’s start-ups hope to mature into successful firms if their top performers are easily poached?

Non-competition agreements should be banned.

Industry representatives claim that non-competition agreements are necessary for companies to protect their intellectual property, more specifically to protect their “trade secrets.” On the contrary, a non-competition (N-C) agreement is the wrong tool for protecting confidential intellectual property (IP). The primary effect of N-C agreements is to suppress competition in the labor market and N-C agreements are unethical.