U.S. Senators Chris Murphy and Todd Young have reported increasing support for the Workforce Mobility Act, a bipartisan bill aimed at restricting the use of non-compete clauses in employment contracts. The legislation is co-sponsored by Senators Tim Kaine and Kevin Cramer.
The Workforce Mobility Act proposes to limit non-compete agreements to cases involving the dissolution of a partnership or the sale of a business. The bill assigns enforcement responsibilities to the Federal Trade Commission and the Department of Labor, while also providing employees with an explicit private right of action in federal court.
Employers would be required to inform their workers about these limitations, addressing findings that non-competes are sometimes used even when they are not legally enforceable. The Department of Labor would also have authority to inform the public about these restrictions. Additionally, both agencies would be tasked with reporting any enforcement actions taken under this law to Congress.
Support for the bill has come from various think tanks, nonprofits, and advocacy groups. Eli Lehrer, President of R Street Institute, stated: “Non-compete agreements are simply inconsistent with a free, open labor market. They cut wages, reduce mobility and hurt workers. Congress should assert its own power to pass a ban on non-competes and deliver results for American workers.”
A summary document outlining details of the bill is available online.
