H.R. 3920 — Introduced in House

I 116th CONGRESS 1st Session H. R. 3920 IN THE HOUSE OF REPRESENTATIVES July 23, 2019Mr. Nadler (for himself and Mr. Cicilline) introduced the following bill; which was referred to the Committee on the Judiciary A BILL To prohibit agreements between employers that directly restrict the current or future employment of any employee. 1. Short title This Act may be cited as the End Employer Collusion Act. 2. Unfair methods of competition and agreements in restraint of trade relating to restrictive employment agreements (a) Definitions In this section: (1) Employ; employer; employee The terms employ, employer, and employee have the meanings given such terms in section 3 of the Fair Labor Standards Act of 1938 (29 U.S.C. 203). (2) Restrictive employment agreement The term restrictive employment agreement means any agreement that— (A) is between 2 or more employers, including through a franchise agreement or a contractor-subcontractor agreement; and (B) prohibits, restricts, or in any way limits one employer from employing, soliciting, enticing, or hiring another employer’s employees or former employees. (b) Conduct prohibited It shall be unlawful for any entity to— (1) enter into a restrictive employment agreement; or (2) enforce or threaten to enforce a restrictive employment agreement. (c) Violation An entity who engages in the conduct described in subsection (b) not later than the date which is 6 months after the date of enactment of this Act shall be liable for— (1) entering into a contract in restraint of trade or commerce under section 1 of the Sherman Act (15 U.S.C. 1); and (2) engaging in an unfair method of competition under section 5(a)(1) of the Federal Trade Commission Act (15 U.S.C. 45(a)(1)). (d) Restrictive employment agreements Nothing in this Act may be construed to reduce the amount of damages available to a plaintiff in a case involving a restrictive employment agreement that is between 2 or more employers that are not affiliated with each other through a franchise agreement or contractor-subcontractor agreement.