summary
Introduced
01/29/2020
01/29/2020
In Committee
01/29/2020
01/29/2020
Crossed Over
Passed
Dead
12/31/2020
12/31/2020
Introduced Session
116th Congress
Bill Summary
Prohibits employers from entering into, enforcing, or threatening to enforce noncompete agreements with employees, subject to exceptions. Noncompete agreements prohibit an employee from performing similar work or working with a competitor employer for a certain period of time or in a specified geographic area after the current working relationship terminates. Employers must post in the workplace a notice of this prohibition.The bill permits certain noncompete agreements in the context of the sale of a business or the dissolution of a business partnership.Violations of the prohibition against noncompete agreements are unfair business practices subject to enforcement by the Federal Trade Commission. The Department of Labor also must receive and investigate complaints of such violations and may bring claims to prohibit enforcement of such noncompete agreements and seek civil penalties.
AI Summary
This bill, the Workforce Mobility Act of 2020, prohibits employers from enforcing noncompete agreements with their employees, with some exceptions. Noncompete agreements restrict employees from working for a competitor or in a similar job for a certain period after leaving their current employer. The bill allows noncompete agreements in the context of the sale of a business or dissolution of a business partnership. Violations of the prohibition against noncompete agreements are considered unfair business practices that can be enforced by the Federal Trade Commission. The Department of Labor must also investigate complaints and can seek to prohibit enforcement of such agreements and impose civil penalties. The bill requires employers to post a notice about this prohibition in the workplace and allows the Department of Labor to conduct a public awareness campaign.
Committee Categories
Business and Industry
Sponsors (3)
Last Action
Referred to the Committee on Energy and Commerce, and in addition to the Committee on Education and Labor, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. (on 01/29/2020)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location | Created |
|---|---|---|
| State Bill Page | https://www.congress.gov/bill/116th-congress/house-bill/5710/all-info | 01/30/2020 |
| BillText | https://www.congress.gov/116/bills/hr5710/BILLS-116hr5710ih.pdf | 02/02/2020 |
| Bill | https://www.congress.gov/116/bills/hr5710/BILLS-116hr5710ih.pdf.pdf | 02/02/2020 |
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