"Train people well enough so they can leave…" non-competes & NYC 💸💌

Wednesday May 8, 2024

Every so often, I am reminded of one of my favorite quotes, attributed to Sir Richard Branson; “Train people well enough so they can leave. Treat them well enough so they don't want to."👑

In case you missed it, the USA Federal Trade Commission recently ruled against Non-Compete Clauses put forth by employers; “The final rule provides that it is an unfair method of competition—and therefore a violation of section 5—for employers to, inter alia, enter into non-compete clauses with workers on or after the final rule's effective date.[2] The Commission thus adopts a comprehensive ban on new non-competes with all workers.” (Peruse the complete document here)

While senior executives in the six-figure salary range are not a part of the ruling, it is for lower-wage workers…when someone cannot be hired by Burger King for a service job because they've been working for McDonald's…I think we've lost the plot.

Back in 2011, I was offered USD $45/class at Crunch Gym in NYC to teach group fitness. Easygoing clientele, mid-range big box gym; not a boutique fitness studio. No non-compete clause & it wouldn't have made sense for me to sign one, anyways. 

In 2014, I briefly taught for Equinox & fought to make $60/class instead of $50, again a box gym where classes were/are a part of a flat rate monthly membership; not a studio wherein clients would be paying a premium to attend a class.

Fast forward to 2024…and I can offhand think of two NYC boutique fitness studios charging their clients a premium per-class package rate, who:

• have a mandatory internal instructor training program in their homegrown methodology, i.e. you have to complete their training to teach there, unlike Crunch or Equinox gyms where you need only to have a 1 day certification + CPR training

• have a very specific method they teach which will not easily transfer to other studios or a big box gym

• pay their instructors between USD $42 - $60 a class (yes, what I made at a gym not boutique in the same very expensive-to-live city more a decade ago 🤡🤡)…including some senior instructors…

• …have a non-compete clause in place for their instructors for the method they offer

Of course, the ruling will be challenged. 

"Noncompete agreements trap workers from finding better jobs, drive down wages, and stifle competition," the AFL-CIO, the country's largest labor federation, said in a tweet in response to the announcement. (from the Reuters piece)

Are you working towards having the very best work experience possible for your staff at your boutique fitness studio? Treating staff well enough that they don't want to leave?

I'd love to hear what's been working well for you.

Until next Wednesday, 

Noël