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Bill Seeks to Limit Use of Non-Compete Agreements


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Non-Compete Contract

Credit: Getty Images

A bill introduced in the U.S. Congress seeks at the federal level to restrict the use of non-compete agreements in most situations.

Between 27.8% and 46.5% of private-sector workers are subject to non-compete agreements, according to a 2019 Economic Policy Institute study. Many Silicon Valley companies ask employees to sign non-compete agreements that prohibit employees who leave their jobs from taking similar positions with potential competitors for a certain period of time.

 The Workforce Mobility Act, introduced by Sens. Chris Murphy (D-CT) and Todd Young (R-IN), would only allow non-competes in certain "necessary" situations.

"Competition among businesses for your labor is the most fundamental bargaining power you've got," says John Lettieri, president and CEO of the Economic Innovation Group, a proponent of the Workforce Mobility Act. "We believe we're in a position where it's possible for this to become law."

From Protocol
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