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US HR5710

US HR5710
Workforce Mobility Act of 2020


summary

Introduced
01/29/2020
In Committee
01/29/2020
Crossed Over
Passed
Dead
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)

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