This bill, the Workforce Mobility Act of 2025, would mostly ban noncompete agreements signed after the law takes effect between a person (such as an employer) and an individual who works for that person in or affecting commerce. Most such noncompete agreements would have no force or effect. The bill allows limited exceptions for agreements tied to the sale of a business or ownership interest (including specified geographic limits), for certain senior executives in a sale if the executive has a severance agreement (and any noncompete for such an executive cannot last more than one year), and for partners after partnership dissolution or dissociation. The bill preserves agreements that protect trade secrets and allows nondisclosure agreements for trade secret information. Employers must post notice of the law where employee notices are normally posted. The Secretary of Labor may run a public awareness campaign.
If you are an employee or contractor, most new noncompete clauses you sign after the law takes effect would be invalid, so you could be freer to take new jobs, work in similar roles, or work in different geographic areas after your job ends. If you are part of a business sale, a partner leaving a partnership, or a senior executive covered by a qualifying severance agreement in a sale, narrow noncompete limits can still apply as described in the bill. Employers may still use nondisclosure agreements and trade secret law to protect confidential information. The Federal Trade Commission (FTC) would treat violations as unfair or deceptive acts and would enforce the rule, and the Department of Labor (DOL) would investigate and could bring legal actions. The bill allows individuals to sue in federal court for actual damages, costs, and attorney fees. Predispute arbitration agreements or predispute joint-action waivers would not be enforceable for alleged violations of this Act. State attorneys general can also bring civil actions on behalf of residents.
No publicly available information.
The bill states findings that noncompete agreements have become widespread and that they reduce wages, restrict worker mobility, harm productivity, and slow innovation. It says noncompetes are blunt tools that can make workers idle or force them out of industries where they have skills. The bill notes employers already have legal tools like trade secret and intellectual property protections and nondisclosure agreements to protect legitimate business interests without broadly limiting worker mobility.
No publicly available information.