INDIANA (WEHT) – U.S. Senators Todd Young and Chris Murphy reintroduced the Workforce Mobility Act on Wednesday, which is bipartisan legislation to limit the use of non-compete agreements that impact American workers.
A news release says almost 30 million people are constrained by a non-compete agreement, which blocks workers from leaving their jobs for a competing employer or starting a competing business. Officials say research indicates that workers trapped by non-competes have lower wages, and their restricted mobility makes it more difficult for businesses to recruit talent. The news release says in states where non-competes are enforced, young firms are more likely to die in their first three years compared to states where they are not enforced.
Senator Todd Young said, “Non-compete agreements stifle wage growth, career advancement, innovation, business creation, and human freedom. Our bill aims to remove these barriers and create opportunities that help, not hinder, Hoosier workers. The reforms in our legislation will assist workers and entrepreneurs so they can freely apply their talents where their skills are in greatest demand.”
Officials say the Workforce Mobility Act would:
- Narrow the use of non-compete agreements to include only necessary instances of a dissolution of a partnership or the sale of a business;
- Require employers to make their employees aware of the limitation on non-competes, as studies have found that non-competes are often used even when they are illegal or unenforceable. The Department of Labor would also be given the authority to make the public aware of the limitation; and
- Require the Federal Trade Commission and the Department of Labor to submit a report to Congress on any enforcement actions taken.
