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Non-Compete Ban: Greater Job Mobility for Workers

This act aims to prohibit most non-compete agreements, which restrict employees from changing jobs. This will give citizens greater freedom to seek new employment and advance their careers, potentially leading to higher wages and better working conditions. The act includes exceptions for business sales and for certain senior executives with severance agreements.
Key points
Ban on most non-compete agreements: Employers will not be able to force employees to sign agreements restricting them from working for competitors after leaving.
Increased job mobility: Citizens will find it easier to switch employers, potentially leading to better job offers and higher pay.
Trade secret protection: The act does not affect non-disclosure agreements that protect company trade secrets.
Enforcement: The Federal Trade Commission and the Department of Labor will oversee compliance, and individuals can sue employers for violations.
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Additional Information
Print number: 117_HR_1367
Sponsor: Rep. Peters, Scott H. [D-CA-52]
Process start date: 2021-02-25