If you are a chief executive of a large company, you very likely have a non-compete clause in your contract and also understand the importance of this clause in preventing you from jumping ship to a competitor until some period has elapsed. However, according to the New York Times, non-compete clauses are popping up in an array of low to moderate pay jobs, like for sandwich makers at the chain – Jimmy John’s.
1. According to the article, why do non-compete clauses for low to moderate pay jobs serve to tilt the playing field toward the owners of businesses and away from the workers who staff them?
2. What are some of the subtle work conditions used by employers to extract more value from entry level workers?
3. According to the article, what are examples of companies that embrace workers as valuable partners in building a company for the long term and how do they demonstrate this?
4. How do non-compete clauses affect accountants and the accounting profession? Do you agree with non-compete clauses in the accounting profession? Discuss.
Irwin, N. (2014) When the Guy Making Your Sandwich Has a Noncompete Clause. The New York Times, Oct. 14 (Retrievable online at http://www.nytimes.com/2014/10/15/upshot/when-the-guy-making-your-sandwich-has-a-noncompete-clause.html?mabReward=RI%3A6&action=click&contentCollection=Politics®ion=Footer&module=Recommendation&src=recg&pgtype=article&abt=0002&abg=1&_r=0)