As regulators take aim at noncompete agreements, people in five states talk about how they’ve been hampered in their attempts to change employers
it could be closer to 5o percent. Evan Starr, a University of Maryland professor who co-authored the Labor Department study, says these agreements cause labor market “frictions” that can, among other things, suppress pay while imposing costs on firms wanting to hire.
For a better salary, Readal believes he would have to pack up and leave his community, and possibly Montana altogether. In 2020, Borowske successfully led a class-action wage-theft lawsuit against his employer, FirstService Residential, which manages other buildings in the area. He also helped kick off an effort to unionize the area’s staff at FirstService, a publicly traded company with a market capitalization of more than $8 billion.
But even in states with stricter laws curbing noncompete clauses, companies still place them in contracts and effectively deter workers from leaving with the threat of possible legal action, experts say. “Now I’m stuck with nothing,” said Wagner, who filed a lawsuit against Henry Schein on grounds that the firm violated the state’s law on noncompetes.
Companies “have been doing this in North Dakota forever,” he said. “The reason is because they can — and most employees are not going to be in a position to fight this.”Andrea Fitzpatrick and Dmitriy Kuzmenko taught ballroom dancing for years in Palm Beach Gardens, Fla., working for a franchise studio. They say the franchise owner asked them in April 2021 to sign a noncompete agreement that would have barred them from teaching within a 25-mile radius of the studio.
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