Generally about noncompetes, this is something I posted among a group of journalists (from January 2021, when I was still at NerdWallet, leading content):
About noncompetes: Do everything you can to avoid signing one (and making anyone sign one). They can suck in more ways than the obvious ones.
You have the most leverage AFTER a company has made you an offer. You can tell them you’d love to join, but won’t do it if they force you to sign a NC (assuming you have the privilege of such a choice; everyone’s circumstances are different). If you can afford to walk away if the company holds firm, hopefully having multiple candidates refuse to join over a noncompete will help change their requirement.
Right now in my Plan B, we have a job candidate whose employer is shutting down operations in their state and yet their noncompete remains in effect. That means the individual no longer has a job, but still can’t work for a competitor unless their old company signs a waiver. (That company remains open. All the companies in our space operate online and many of us hire people remotely. My employer does, for instance.)
Our legal team reviewed their situation and we can’t hire them if they can’t get a waiver, given where they live and how their state enforces noncompetes.
For us, it’s an inconvenience. We can always hire someone else. For the individual, their NC has screwed them over, even though their company no longer wants to employ them. That’s really fucked up. This person can’t leverage what they’ve learned and effectively has to begin anew in another domain, which hurts their earning ability and limits their career options. This also means they might end up having to move involuntarily, just so they can land work.
Personally, I won’t sign a noncompete and I won’t make anyone sign one. I strongly believe that if you want to keep employees, you do it by making them WANT to stick with you, not by fucking holding them hostage economically. Sure, it’s never ideal if your employee quits to join a rival company, but that’s life.
And I urge all managers to avoid being complicit in making anyone sign one. If you do that, you are actually hurting all of us who work by emboldening more companies to fuck us over with noncompetes.