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by manfredo 2756 days ago
> You get paid for the goodwill value and you should not be able to capitalize on the payment and simultaneously raid the goodwill of your former practice by competing against it.

No, employees don't get paid for "goodwill value" - whatever that means - they get paid for work they do in the course of their employment. If a company stands to lose if one of their employees changes jobs and works for a competitor, then the employer should be sure to give them generous raises and compensate them for the fair market value of their labor - not by relying on legal threats. I'm baffled by how widespread this belief that employees have some moral responsibility to sacrifice opportunities to the benefit of their current employer. Be a rational actor in the labor market, doing otherwise is an easy way to get taken advantage of.

1 comments

> No, employees don't get paid for "goodwill value"

The passage you quoted and replied to wasn't about employees, it was one of two examples GP raised to argue that that non-competes can make sense outside of an employment context.

> Thus, even states like California, which basically ban the use of non-competes in an employment context, will fully enforce them in the situations noted above.

From the original comment

> So too if you exit a professional practice and get bought out. Same principle. You get paid for the goodwill value and you should not be able to capitalize on the payment and simultaneously raid the goodwill of your former practice by competing against it. Fair and reasonable even though it restricts you in your livelihood.

Unless "professional practice" specifically refers to something like being the partner of a law firm it does sound like it's saying that the spirit of non-competes should apply between employee-employer relationships.

Even then it seems like a bad thing you advocate. If I am at a law firm and I think I would be better served to go form my own practice, I shouldn't refrain from doing so out of some sense of goodwill on part of my previous practice. Sure, it may be a bad idea to burn bridges - but that's done out of a desire to maintain good relations and reputation, not because it's immoral to compete withy past employer.

There is a "get bought out." mention in the text you quote.

If you get a fair compensation to end your job then a NC is justifiable.