Concerning Legislation to Prohibit Noncompete Agreements Introduced in the Senate

Recently, Sen. Todd Young (R-Indiana) and Sen. Chris Murphy (D-Connecticut) introduced S. 2614, the “Workforce Mobility Act of 2019.” The legislation would limit the use of certain noncompete agreements.

Specifically, S.2614 would narrow the use of noncompete agreements to include only necessary instances of a dissolution of a partnership or the sale of a business. The legislation would also place the enforcement responsibility on the Federal Trade Commission and the Department of Labor, as well as create a private right of action. Notably, the legislation would require employers to make their employees aware of the limitations.

Earlier this year, senators Young and Murphy also sent a letter to the Government Accountability Office (GAO) urging an investigation into the use and abuse of noncompete agreements.

Wyatt Stewart is Big “I” senior director of federal government affairs.