Engine submitted comments to the House Judiciary Subcommittee on Antitrust, Commercial, and Administrative Law following the panel’s October 29th hearing on competition in labor markets.
The use of non-compete agreements prevents highly-skilled workers from accepting positions at startups or launching their own entrepreneurial ventures. In order to spur competition between established industry leaders and innovative startups, emerging small businesses need access to qualified talent. Overly restrictive non-compete agreements only seek to protect larger companies and stifle competition at the expense of the startup ecosystem. As Congress examines ways of improving competition in labor markets, we hope that lawmakers will consider rolling back barriers to startup growth.
“Non-compete agreements prevent employees from accepting new opportunities at startups and starting their own firms using the skills they developed in the job market—all out of fear of legal repercussions from provisions in non-compete agreements that often have little to do with protecting legitimate employer interests,” we note in our comments.
You can view our full comments here.
