Senate Democrats Seek To Ban Noncompetes

It won't pass, but a group of Democrats in the U.S. Senate have proposed a bill that would ban noncompete agreements. The Workforce Mobility Act would prohibit the use of non-compete agreements and require employers to notify employees that these agreements are illegal. It would also allow the U.S. Department of Labor to enforce the ban with fines on the employer.

Here are the key provisions:

3. Presumption of illegality of covenants not to compete in employment contractsA covenant not to compete contained in an employment contract made between an employer and an employee is anticompetitive and violates the antitrust laws unless the employer establishes by a preponderance of the evidence that the covenant does not have an anticompetitive effect or that the pro-competitive effects outweigh the anticompetitive harm.
4. Private right of action
(a) In general
Any person who fails to comply with section 2 shall be liable to any individual in an amount equal to the sum of—
(1) any actual damages sustained by the individual as a result of the failure;
(2) such amount of punitive damages as the court may allow; and
(3) in the case of any successful action to enforce any liability under this subsection, the costs of the action together with reasonable attorney’s fees as determined by the court.
(b)Venue
Any person may bring a civil action under subsection (a) in any appropriate district court of the United States.
5. Trade secretsNothing in this Act shall preclude an employer from entering into an agreement with an employee to not share any information (including after the employee is no longer employed by the employer) regarding the employer or the employment that is a trade secret as defined in section 1839 of title 18 of the United States Code.

It's an excellent bill, but it will take a blue wave in November to get it passed, and it will be vetoed if it does pass. Still, it's a start. I can dream, can't I?

Vote Best.