Federal And California's Shared Interest In Promoting Open Competition: Isn't It Ironic?

This article provides a brief history of California's pro-competition law and describes the stalled federal initiative to extend a similar noncompete ban nationally, notwithstanding the overlapping policy interests expressed by the Federal Trade Commission.

1. Brief Background

Years ago, I recall reading an Economist article describing California's non-compete ban as the reason why both Silicon Valley and Hollywood took root in California. See Ties that bind: The market for smart people is clogged up by all manner of dubious legal restrictions (Dec. 14, 2013). The article reasoned that without the free flow of skilled labor, these industries would not have been able to innovate as quickly or to benefit from the knowledge of those who had worked in related industries.