Biden and noncompete.

[Cornelius]

President is considering doing away with noncompetes also extending to independent contractors. I wonder how that can effect the MLM type organizations? Will agents be able to take their downline and go to the highest bidder?

[EXTERNAL LINK] - Biden's regulators propose banning non-competes

 

[rousemark]

President is considering doing away with noncompetes also extending to independent contractors. I wonder how that can effect the MLM type organizations? Will agents be able to take their downline and go to the highest bidder?

[EXTERNAL LINK] - Biden's regulators propose banning non-competes

Sounds as if this would do away with having to have a release to move from one IMO to another.

 

[scagnt83]

I dont think all non-competes are bad. It just needs some common sense regs surrounding it. They have become abusive in many situations.

 

[Juan Pinera]

Non-competes prevent competition, thus hurting the consumer and ensconcing monopolies in specific industries. These agreements have been used to prevent client drain. At the end of the day, in the Insurance field, you do not own the client they are free to go to any agent or agency that suits their needs. Larger and more established firms try to prevent this with non-compete agreements.

 

[goillini52]

When I saw the title of this thread, I thought, "Biden's Incompetence", or "Biden's Incontinence" .

 

[Markthebroker]

When I saw the title of this thread, I thought, "Biden's Incompetence", or "Biden's Incontinence" .

Honest to god - "Biden's Incompetence" is what I saw the first time I saw the thread title.

 

[toolbelt]

President is considering doing away with noncompetes also extending to independent contractors. I wonder how that can effect the MLM type organizations? Will agents be able to take their downline and go to the highest bidder?

[EXTERNAL LINK] - Biden's regulators propose banning non-competes

MLMs are known for including clauses which prevent their reps from seeking labor law protections, or even legal actions including class-action lawsuits, instead forcing them to use mediation, typically held in the domicile of the corporate office. Attendance at such mediation comes with additional costs such as airfare, meals and accommodation.

 

[Newby]

Sounds as if this would do away with having to have a release to move from one IMO to another.

I don’t see how that would affect it at all. Insurance companies don’t have anyone sign a noncompete. That has nothing to do with not allowing dual contracting or letting you bounce from one distribution channel to another.

The reason agents need releases is because insurance companies don’t want agents bouncing around and trying to skip out on their debts. No non-compete clause needed. They simply require a 6-month wait or a release from the current (on the hook for the debts IMO).

 

[rousemark]

I don’t see how that would affect it at all. Insurance companies don’t have anyone sign a noncompete. That has nothing to do with not allowing dual contracting or letting you bounce from one distribution channel to another.

The reason agents need releases is because insurance companies don’t want agents bouncing around and trying to skip out on their debts. No non-compete clause needed. They simply require a 6-month wait or a release from the current (on the hook for the debts IMO).

Most IMOs will not release even if no debt i owed. The release requirement is effectively an 6 month non compete.

 

[WinoBlues]

The reason agents need releases is because insurance companies don’t want agents bouncing around and trying to skip out on their debts. No non-compete clause needed. They simply require a 6-month wait or a release from the current (on the hook for the debts IMO).

Not an IMO.

Questions:
How does a release prevent an agent from skipping on debt? Wouldn't the company know and simply not contract them?

I get that the companies protect the IMOs. But seems Vector reporting would be more debt oriented. I am pretty sure this does not apply to you, Todd and several others here but we see so many stories of bully IMOs simply not releasing. Granted mostly only one side of the story.

Never been an issue for me, just asking.