summary
Introduced
02/25/2021
02/25/2021
In Committee
02/26/2021
02/26/2021
Crossed Over
Passed
Dead
01/03/2023
01/03/2023
Introduced Session
117th Congress
Bill Summary
A BILL To prohibit certain noncompete agreements, and for other purposes.
AI Summary
This bill, the Workforce Mobility Act of 2021, generally prohibits the use of non-compete agreements, with some exceptions. The key provisions include:
1. Prohibiting non-compete agreements, except in cases of the sale of a business's goodwill or ownership interest, or in partnership dissolution or dissociation situations.
2. Allowing non-compete agreements with senior executive officials who have a severance agreement, but limiting the duration of such agreements to one year.
3. Preserving the ability of employers to protect trade secrets through non-disclosure agreements.
4. Requiring employers to post notices about the provisions of this Act, and allowing the Secretary of Labor to conduct a public awareness campaign.
5. Designating enforcement authority to the Federal Trade Commission and the Department of Labor, and creating a private right of action for individuals aggrieved by violations of the Act.
The overall goal of the bill is to promote worker mobility and reduce the negative impacts of overly broad non-compete agreements on workers, while still allowing employers to protect their legitimate business interests.
Committee Categories
Business and Industry
Sponsors (7)
Scott Peters (D)*,
Angie Craig (D),
Michael Doyle (D),
Anna Eshoo (D),
Mike Gallagher (R),
Josh Harder (D),
Peter Meijer (R),
Last Action
Referred to the Subcommittee on Consumer Protection and Commerce. (on 02/26/2021)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.congress.gov/bill/117th-congress/house-bill/1367/all-info |
| BillText | https://www.congress.gov/117/bills/hr1367/BILLS-117hr1367ih.pdf |
| Bill | https://www.congress.gov/117/bills/hr1367/BILLS-117hr1367ih.pdf.pdf |
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