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Close-up shot of Scales of Justice statue in Brisbane CBD on August 1, 2018.

"Our observation is that the practice has a chilling or intimidating effect, which means that employees observe restraints, even if they overreach, without challenging them in court."

"Specifically, they find that firms in states that do not enforce non-competes are twice as likely to remind workers about the terms of their non-compete after they get a job offer from a competitor."

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A survey cited by e61 found around 22 per cent of Australian employees were covered by a non-compete clause.

"The FTC estimates that without non-compete restrictions, American workers could earn nearly $US300 billion more in wages."

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