Millions of workers are ‘bound’ by non-binding contracts

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Millions of American workers believe they are bound by contracts they are not actually bound by, according to University of Maryland Smith Business School’s Evan Starr, and this means less earnings for workers. Starr spoke at length on the subject at the recent Aspen Institute summit and to us on Twitter.

While non-competes are required by employers to protect trade secrets, they are found everywhere, including regular minimum wage workers and volunteers. Around 20% America’s 130 million workers are in a non-compete right now, and 40% have signed a non-compete at some point in their lives.

What Starr has found is that workers are acting as though they are bound by employee contracts based solely on their false belief that the contracts are always enforceable. In many states the contracts are not.

“[W]orkers are chilled just by the existence of the contract regardless of whether it’s enforceable or not, and when you ask workers, ‘What do you know about the law,’ most of them don’t know what the law is, but their default is they believe that contracts they put their name on are enforceable, and they abide by them, even in states like California where they wouldn’t be enforceable if they went to court.

Evan Starr
Evan Starr of UMD Smith B-School

“When it comes to workers choosing to move between jobs what we see is the use of these provisions appears to be what matters, not necessarily their enforceability in court.”

And, according to Starr, one of the results is workers making less money throughout their careers.

“I did one study where we tracked workers over 8 years of their career. We had every single worker in 30 states over roughly a 20-year period, and what we found was that if you start your career in kind of an average enforcing state, you are going to earn 5% lower earnings relative to a non-enforcing state like California, over those 8 years, regardless of where you end up, regardless of where you go.”

Numbers are uncertain as to exactly how many Americans are affected in this way, because states vary so much in regards to non-compete enforceability.

“There’s tremendous heterogeneity across the US in what states will do. In some states you can be fired from your job, and if you get sued over the violation of a non-compete it can still be enforced even though you were fired. In other states it won’t be enforced, and everyone else is kind of in the middle.”

But Starr said it was safe to say that many millions of Americans assume they are bound by non-binding contracts. In California, to use a state he studied recently, there are approximately 20 million workers, so around 4 million may be involved in non-binding contracts. Those numbers can be roughly extrapolated to the rest of the 130 million U.S. workers who live in the other states.

“And that number is most certainly an underestimate given that non-competes are used for workers in states that wouldn’t enforce them for such workers, even though they would enforce them for other workers,” Starr added.

Starr et al’s ‘Noncompetes in the U.S. Labor Force’

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Possible new law of nature on the way

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The world of physics is excited about strong but early evidence about the behavior of muons, paricles identical to electrons only 200x more massive (heavier), which once born take 2.2 microseconds to decay into an electron, and which spin like tops. In a new, extremely precise measurement, they were made to wobble using magnetic fields but they unexpectedly wobbled quite significantly faster than the Standard Model suggests they would. They might spin so fast due to an unknown force caused by an unknown particle, and this is what is so exciting.

“We found that a muon … is not in agreement with our current best theory of physics at the subatomic level, and … it potentially points to a future with new laws, new particles and new forces in physics which we haven’t seen to date,” said Professor Mark Lancaster at U of Manchester.

“The main goal of the experiment is to make the measurement and compare with the theory, and if they disagree then it’s telling us that there’s something in nature which is not in the theory,” explained James Mott at Fermilab.

The four known forces of nature (gravity, electricity, two nuclear forces: strong and weak interactions) have left scientists without an answer for some observed phenomena, such as the speed at which galaxies spin (faster than the best model suggests). Therefore, they continue to search for glitches in their already-tight models which might point them things they don’t yet know about.

The most recent work was done at Fermilab (Muon g-2 experiment), but a similar experiment was already done earlier at the Large Hadron Collider. These tools accelerate particles in large rings at close to the speed of light.

The evidence needs more tests for greater certainty, particularly to rule out the possibility of a systematic error, and particularly with a new, independent experiment, but physicists will be chasing this line of experiment eagerly.

“This is outstanding confirmation of experimental technique, and very, very suggestive of the possibility of new physics,” noted scientist David Hertzon of U of Washington.

By the editors

#AnomalousMagneticDipoleMomentOfTheMuon #QuantumElectrodynamics

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People in Kachin state demonstrate against China

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YANGON, Myanmar – The people in the Pharkant area of Kachin state demonstrated against China this week, drawing a cross on the Chinese flag and burning a picture of Myanmar’s military leader Min Aung Hlaing.

“China stands with the military leader,” shouted the demonstrators.

By Htay Win
Photo credit Aye Yarwaddy

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Myanmar military council arrests the artist Zarganar

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YANGON, Myanmar – The artist Zarganar was arrested by the Myanmar military council from his home in Tarmwe township, Yangon this morning.

Zarganar is not only a director but also a comedian famous for political jokes since the 1988 democratic revolution.

Zarganar was arrested by the Myanmar military many times before 2010.

By Htay Win
Photo credit Zarganar page

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Kayin IDPs struggle to get for food

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YANGON, Myanmar – Kayin internally displaced people are desperate for food, clothing and shelter, hiding in the forest from the air strikes of the Myanmar military.

The IDPs fled to neighboring Thailand, but Thai government turned them back. However, Wednesday morning the Thai government opened Maeseli jetty in Maehaungsaung district to sending rations and medicines over the border to Kayin state, according to a Thai media.

By Htay Win

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Twenty Myanmar celebrities charged with incitement

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YANGON, Myanmar -They were charged under the country’s media law with inciting government employees to join the popular civil disobedience movement (CDM) through social media.

Celebrities took part in the NLD election campaigns and are thought to have played a large part in influencing the public, particularly Myanmar’s youth, to vote for Aung San Suu Kyi.

By Htay Win
Photo credit Myanmar celebrity

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