Fast Food Workers and Noncompete agreements

Most employers require their new hires to sign noncompete agreements. This agreement states that the employee is not allowed to work with a competitor for a month or more after leaving their current place of employment. There have been many debates regarding the signing of noncompetes, some suggestions include involving the state government to regulate the non-compete, legislatures to regulate it, etc. 

From the employee's perspective, the non-compete takes away their major power as an employee which is that they can quit anytime and work somewhere else, however, the noncompete does not allow this. According to an article by the Journal of Law and Economics, over 39% of all public and private sector employees have been subject to some form of a noncompete in their careers. Employers believe that the noncompete indirectly benefits the employee as it gives employers the confidence to hire them and invest in their upskilling. These agreements are not uniform, they are subject to change and flexible as per the discussion conducted between the employee and employer. Noncompete agreements become especially harmful in the case of minimum wage workers such as fast food employees. 12% of workers earning less than $20,000 were asked to sign noncompetes, these low-wage workers are usually not privy to trade secrets and strategies negating the employer's point. Even the US Chamber of Commerce notes that the noncompetes which prohibit workers from leaving their current workplace and go to a competitor who is likely to pay more are a problem.

Source: The New York Times