Key Points
The threat appeared to mark a turning point in Altmans ultimately successful attempt to return to OpenAIit was also a scenario that businesses have the legal power to block in most US states...
California, home to OpenAIs San Francisco HQ, is one of a handful states that bar the enforcement of noncompete agreements in employment contracts, which can forbid employees from hopping jobs to a competitor, often for years..
California even strengthened its ban this year, outlawing the enforcement of noncompete agreements signed in other states and making it illegal to require an NCA...
Earlier this year, researchers at Stanford, Duke, and the FTC analyzed state-level changes to the enforceability of noncompetes between 1991 and 2014 and found that an average increase in strictness led to a 16 to 19 percent reduction in patents over the following 10 years...
Starrs report points to several recent studies which found that workers who labor under noncompetes earn less than those without them, and that when states enforce the agreements more stringently, wages fall..
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Innovation-Killing Noncompete Agreements Are Finally Dying
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