Freedom To Compete Act: Ban on Non-Compete Agreements for Most Workers.
This Act voids existing non-compete agreements and bans employers from entering into new ones with most employees, significantly increasing job mobility. This means non-exempt workers (like hourly staff) are free to seek similar employment elsewhere immediately after leaving a company without legal restriction. The rules do not apply to high-level executives or professionals, and employers can still protect trade secrets.
Key points
All existing non-compete agreements for covered employees are immediately void and unenforceable.
Employers are prohibited from signing, extending, or enforcing new non-compete agreements with non-exempt staff.
Violation of the ban is considered a violation of the Fair Labor Standards Act (FLSA), subjecting employers to penalties and liability for relief owed to the employee.
The law explicitly allows employers to continue using agreements to protect genuine trade secrets and confidential company information.
Status:
Expired
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