Support Grows For Murphy, Young Legislation To Limit The Use of Non-Compete Clauses
WASHINGTON—U.S. Senators Chris Murphy (D-Conn.) and Todd Young (R-Ind.) on Wednesday noted growing support for the Workforce Mobility Act, bipartisan legislation to limit the use of non-compete clauses, which negatively impact almost one in every five American workers. U.S. Senators Tim Kaine (D-Va.) and Kevin Cramer (R-N.D.) co-sponsored the legislation.
The Workforce Mobility Act would:
- Narrow the use of non-compete agreements to include only necessary instances of a dissolution of a partnership or the sale of a business;
- Charge the Federal Trade Commission and the Department of Labor with enforcement, as well as making explicit a private right of action in federal court;
- Require employers to make their employees aware of the limitation on non-competes, as studies have found that non-competes are often used even when they are illegal or unenforceable. The Department of Labor would also be given the authority to make the public aware of the limitation; and
- Require the Federal Trade Commission and the Department of Labor to submit a report to Congress on any enforcement actions taken.
Below is a roundup of support from think thanks, non-profits, and advocacy organizations…
“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,” said Eli Lehrer, President, R Street Institute...
A one-pager of the bill is available HERE.