Bill > S2031

This bill aims to prohibit noncompete agreements across the United States, with the goal of increasing worker mobility and fostering innovation. The legislation defines a noncompete agreement as any contract that restricts an employee from working for another employer, in a specific geographic area, or doing similar work after leaving a job. The bill generally bans such agreements for most workers, with two key exceptions: (1) when a business is being sold, the seller can agree not to compete in a specific geographic area where the business previously operated, and (2) senior executive officials can have noncompete agreements lasting up to one year as part of a sale's severance terms. The bill allows employers to still protect their interests through trade secret protections and nondisclosure agreements. Enforcement will be handled jointly by the Federal Trade Commission and the Department of Labor, with both agencies establishing complaint systems and the ability to investigate violations. Workers and state attorneys general will also have the right to bring civil actions against companies that violate the law. The legislation is based on economic findings that noncompete agreements reduce wages, restrict worker mobility, and impede innovation, with economists estimating that one in five workers is currently bound by such agreements.

Health and Social Services

https://www.congress.gov/bill/119th-congress/senate-bill/2031/all-info