Misconceptions In The Debate About Noncompetes

Law360 (July 8, 2019, 2:06 PM EDT) -- It turns out that global climate change is caused by a decrease in the number of pirates. Don’t believe it? See the chart below:

This is an example of mistaking correlation for causation. Correlation does not imply causation.[1]

A Developing Problem of Presumed Causation

The assumption that correlation implies causation arises often in the ongoing debate about the effects of noncompetes on the economy.

At the core of the debate is a common misconception that California’s ban on noncompetes is the reason that California surpassed Massachusetts (and all other states) in the high-tech industry. Even assuming there were any truth at...

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