One of the most important contracts that many employees sign is a non-compete agreement. A number of
Question:
One of the most important contracts that many employees sign is a non-compete agreement. A number of states are restricting what can be contained in a non-compete agreement and putting more limits on their use. The law in Washington State regarding non-compete agreements has been changing in recent years. For example, now as of January 1, 2020, the law nullifies non-compete agreements for employees who make less than $100,000/year or independent contractors making less than $250,000/year (numbers are adjusted each year due to inflation). The 2020 law also states that non-competes cannot be enforced for a term beyond 18 months unless the employer can prove business necessity.
Another recent change to employment law was signed into law by Governor Jay Inslee on March 24, 2022, and became effective on June 9, 2022. Note that Washington is only the second state in the US to adopt such a law (after California). The "Silenced No More" Act applies to employment agreements and independent contractor agreements (including non-compete agreements, non-disclosure agreements, and severance agreements). Please read the attached article. You may find it useful to look up some of the legal terms and concepts in the article before starting this assignment. Any sources should be cited.
QUESTIONS TO ANSWER:
After you have read the attached article below, please answer the following about employment-related agreements:
- Identify the interests and positions of the parties involved in a standard non-compete agreement. What is the relative power and leverage of the parties as they enter into a typical non-compete agreement?
- Do you think non-compete agreements should be allowed by law (i.e., are they necessary)? What are they designed to do?
- Should there be legislation on employment agreements such as those discussed in the article about the Silenced No More Act? Does your perspective change if you view it through the lens as an employee versus as a manager?
REFERENCED ARTICLE: https://nwsidebar.wsba.org/2022/06/06/what-you-need-to-know-about-washingtons-silenced-no-more-act/
Fundamental Managerial Accounting Concepts
ISBN: 978-0078025655
7th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old