I support the Workforce Mobility Act, bipartisan legislation reintroduced by U.S. Senators Todd Young and Chris Murphy, with co-sponsors Tim Kaine and Kevin Cramer.
This critical bill addresses the pervasive issue of non-compete clauses, which are negatively affecting American workers and hindering our nation's economic vitality.
Currently, approximately 30 million American workers—or one in five—are constrained by non-compete clauses.
These agreements block individuals from seeking employment with a competing employer or even starting their own competing business. The consequences are dire:
Lower Wages and Stifled Growth: Research indicates that workers trapped by non-competes earn lower wages, and these clauses stifle overall wage growth. They are seen to "crush worker power".
Hindered Innovation and Business Growth: Non-compete agreements stifle growth, career advancement, innovation, and human freedom. They make it more difficult for businesses to recruit and hire talent. Furthermore, young firms in states with non-compete enforcement are more likely to fail within their first three years compared to states where these clauses are not enforced.
Unfair Practices: Studies show that non-competes are often used even when they are illegal or unenforceable, creating undue limitations for employees.
The Workforce Mobility Act offers a vital solution by proposing significant reforms:
It would narrow the use of non-compete agreements to only necessary instances, such as the dissolution of a partnership or the sale of a business.
It places enforcement responsibility on the Federal Trade Commission (FTC) and the Department of Labor (DOL).
It would require employers to inform employees of the limitations on non-competes, and grant the DOL authority to make the public aware of these limitations.
It also requires the FTC and DOL to submit a report to Congress on any enforcement actions taken.
This legislation aims to remove barriers that stifle career advancement, innovation, and human freedom, ultimately creating opportunities that help workers and entrepreneurs, rather than hindering them. By passing the Workforce Mobility Act, Congress can empower American workers to freely apply their talents where they are most in demand, foster greater innovation, and support the growth of new businesses across the country.
Please stand with American workers and businesses by supporting the Workforce Mobility Act.