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Should CA repeal its ban on noncompete clauses?




General view of the empty O2 offices on February 8, 2012 in Slough, England.
General view of the empty O2 offices on February 8, 2012 in Slough, England.
Ian Gavan/Getty Images for O2

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Once popular in the domains of high-tech and sales, noncompete clauses are now appearing in new professions. From hair salons to summer camps, employers across the country are putting in noncompete clauses in employment contracts to prevent employees from working for their rivals.

California bans noncompete clauses, but businesses are finding ways to get around the prohibition.

Supporters of the ban--mostly venture capitalists and high-tech companies--say it noncompetes stifle innovation. Opponents--including small businesses--argue that noncompetes encourage companies to invest and retain their workers.  Massachusetts is currently debating whether to put in a noncompete ban. Should California repeal its ban?

Guests:  

Orly Lobel, professor at the University of San Diego School of Law; author of “Talent Wants to be Free” (Yale University Press, 2013) focusing on noncompete clauses

Lee Fleming, Director of Coleman Fung Institute for Engineering Leadership; Professor of Management of Organizations at UC Berkeley who has studied the economic impact of noncompete clauses