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<\/div>\n?A bipartisan group of Congressional lawmakers has introduced the Workforce Mobility Act of 2023, legislation that would largely ban the use of noncompete agreements in employment nationwide.<\/p>\n
Previously introduced in 2018, 2019 and 2021, it was recently reintroduced in the U.S. Senate by Sens. Christopher Murphy, D-Conn., and Todd Young, R-Ind., and is co-sponsored by Sens. Tim Kaine, D-Va., and Kevin Cramer, R-N.D.<\/p>\n
U.S. Reps. Scott Peters, D-Calif., and Mike Gallagher, R-Wis., introduced the legislation in the U.S. House of Representatives.<\/p>\n
President Joe Biden also called for an end to noncompete agreements<\/a> in his recent State of the Union address.<\/p>\n We’ve rounded up articles from SHRM Online<\/em> and other outlets to provide more context on the news.<\/p>\n The Workforce Mobility Act of 2023<\/p>\n If enacted, the bill would narrow the use of noncompete agreements<\/a> to include only necessary instances of a dissolution of a partnership or the sale of a business; charge the Federal Trade Commission (FTC) and the Department of Labor with enforcement; make explicit a private right of action in federal court; and require employers to make their employees aware of the limitation on noncompetes. The bill does not prevent the use of confidentiality agreements protecting trade secrets or nonsolicitation clauses.<\/p>\n (Office of U.S. Senator Chris Murphy, D-Conn.<\/a>)<\/p>\n Feds Push to End Noncompete Agreements<\/p>\n The legislation follows on the heels of the proposed rule by the FTC that would make most employment noncompete agreements an unfair or deceptive trade practice under federal law.<\/p>\n (SHRM Online<\/em><\/a>)<\/p>\n How Should Employers Respond to Noncompete Bans?<\/p>\n Legal experts advised that employers not panic. First, employers should submit public comments on the proposed FTC rule, followed by re-evaluating noncompete policies and ensuring that any restrictive covenants are reasonably tailored in terms of geographic scope and duration.<\/p>\n