Is Interference from Over Agressive Noncompete Litigation to Blame for Slow Wage Growth?

Despite a strong jobs report on May 3, 2019, wage growth continues to be a disappointment. See Axios post, “The Mystery of Sluggish Wages.” I don’t have all the answers, but I can point to at least a partial explanation for this mystery; the employment market is often contractually rigged by employers using overbroad contractual restrictions to artificially suppress wages. Offer Employees Better Compensation; Get Ready to be Sued. My law firm was recently retained to represent individuals sued by their prior employer. They were sued for allegedly “violating” a broadly worded provision concerning the hiring of plaintiff’s employees. This restriction is similar to no-poaching agreements that have been the target of federal scrutiny. Under the subject agreement, a former employee cannot for two years: … directly or indirectly … recommend for hiring, solicit or attempt to solicit any [Company] employee for the purposes of leaving…

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