,i  #aafth ,,congress  #b;d ,session    
,h4 ,r4 #egaj  ,,in ,,the ,,house ,,of  
,,representatives  ,january #bi1        
#bjbj,mr4 ,peters 7for himself1 ,mr4    
,gallagher1 and ,ms4 ,eshoo7 introduced 
the following bill2 which was referred  
to the ,committee on ,energy and        
,commerce1 and in addition to the       
,committee on ,education and ,labor1 for
 a period to be subsequently determined 
by the ,speaker1 in each case for       
consideration of such provisions as fall
 within the jurisdiction of the         
committee concerned  ,a ,,bill  ,to     
prohibit certain noncompete agreements1 
and for other purposes4  #a4 ,short     
title ,this ,act may be cited as the    
,workforce ,mobility ,act of #bjbj4  #b4
 ,findings ,congress finds the          
following3  7#a7 ,the proliferation of  
noncompete agreements throughout        
sectors1 occupational categories1 and   
income brackets is contrary to          
,congress's commitment to fostering     
stronger wage growth for workers in the 

,united ,states4 ,economists now        
estimate that #a in #e workers is       
covered by a noncompete agreement4  7#b7
 ,noncompete agreements are blunt       
instruments that crudely protect        
employer interests and place a drag on  
national productivity by forcing covered
 workers to either idle for long periods
 of time or leave the industries where  
they have honed their skills altogether4
  7#c7 ,enforceable noncompete          
agreements also reduce wages1 restrict  
worker mobility1 impinge on worker      
freedoms to maximize their labor market 
potential1 and slow the pace of         
,american innovation4  7#d7 ,employers  
have access to legal recourses to       
protect their legitimate interests and  
property1 including trade secret        
protections1 intellectual property      
protections1 and nondisclosure          
agreements that do not inflict broad    
collateral harm on workers' labor market
 prospects4  7#e7 ,employers that rely  
on a list or lists of vendors1          

customers1 or clients that are not      
easily obtained by an individual through
 means other than the work relationship 
have adequate legal protection through  
the use of trade secrets protections and
 nondisclosure agreements4  7#f7        
,noncompete agreements broadly restrict 
employment options for workers in the   
,united ,states when more narrowly      
targeted remedies are readily available 
to employers4  7#g7 ,fostering an       
environment where employers can flourish
 is necessary to promote vitality and   
prosperity in the economy4  7#h7        
,employers may retain critical skilled  
employees while ensuring that           
disincentives affecting mobility1       
including noncompete agreements1 do not 
negatively impact the workforce in the  
,united ,states4  #c4 ,prohibiting      
noncompete agreements  7a7 ,prohibition 
7#a7 ,in general ,except as provided in 
subsection 7b71 no person shall enter   
into1 enforce1 or threaten to enforce a 
noncompete agreement with any individual

 who performs work for the person and   
who in any workweek is engaged in       
commerce or in the production of goods  
for commerce 7or is employed in an      
enterprise engaged in commerce or in the
 production of goods for commerce74     
7#b7 ,effect of agreements ,except as   
provided in subsection 7b71 a noncompete
 agreement described in paragraph 7#a7  
shall have no force or effect4  7b7     
,exceptions  7#a7 ,sale of goodwill or  
ownership interest  7,a7 ,in general    
,any person who sells the goodwill of a 
business1 any owner of a business entity
 selling or otherwise disposing of all  
of his or her ownership interest in the 
business entity1 or any owner of a      
business entity that sells an asset or  
interest as described in subparagraph   
7,b71 may enter into an agreement with  
the buyer to refrain from carrying on a 
like business within a specified        
geographic area described in            
subparagraph 7,c71 if the buyer1 or any 
person deriving title to the goodwill or

 ownership interest from the buyer1     
carries on a like business in such      
specified geographic area4  7,b7 ,asset 
or interest ,an asset or interest       
described in this subparagraph is-- 7i7 
all or substantially all of the         
operating assets and the goodwill of the
 business entity2  7ii7 all or          
substantially all of the operating      
assets of a division1 or a subsidiary1  
of the business entity and the goodwill 
of that division or subsidiary2 or      
7iii7 all of the ownership interest of  
any subsidiary of the business entity4  
7,c7 ,specified geographic area ,a      
specified geographic area described in  
this subparagraph is a geographic area  
specified in the agreement described in 
subparagraph 7,a71 or 7,d7 as           
applicable1 where the business1 business
 entity1 division1 or subsidiary sold as
 the subject of such agreement1 has     
conducted business prior to the         
agreement4  7,d7 ,senior executive      
officials with severance agreements  7i7

 ,in general ,any buyer or seller       
described in subparagraph 7,a7 may enter
 into an agreement with a senior        
executive official who has a severance  
agreement described in clause 7iii7 for 
the senior executive official to refrain
 from carrying on a like business within
 a specified geographic area described  
in subparagraph 7,c71 if the buyer1 or  
any person deriving title to the        
goodwill or ownership interest from the 
buyer1 carries on a like business in    
such specified geographic area4  7ii7   
,time-limited agreement ,an agreement   
described in clause 7i7 may not require 
the senior executive official to refrain
 from carrying on a like business as    
described in such clause for a period   
that is greater than one year4  7iii7   
,severance agreement ,a severance       
agreement described in this clause is an
 agreement between the buyer and the    
senior executive official1 or an        
agreement between the seller and the    
senior executive official1 described in 

clause 7i7 that--  7,i7 is part of the  
terms and conditions of the sale2 and   
7,,ii7 requires monetary compensation   
for the senior executive official in the
 event of termination of the employment 
of the senior executive official at an  
amount that is greater than or equal to 
the compensation the official is        
reasonably expected to receive from the 
buyer during the #a-year period         
following the sale4  7,e7 ,definitions  
7i7 ,buyer1 sale1 seller ,for purposes  
of this paragraph-- 7,i7 the term buyer 
means1 as described in subparagraph     
7,a71 any person who buys the goodwill  
of a business1 buys or otherwise        
acquires ownership interest in a        
business entity1 or buys an asset or    
interest as described in subparagraph   
7,b72  7,,ii7 the term sale means1 as   
described in subparagraph 7,a71 the sale
 of the goodwill of a business1 the sale
 or other disposal of all of the        
ownership interest of the seller in a   
business entity1 or the sale of an asset

 or interest as described in            
subparagraph 7,b72 and  7,,iii7 the term
 seller means1 as described in          
subparagraph 7,a71 any person who sells 
the goodwill of a business1 any owner of
 a business entity selling or otherwise 
disposing of all of his or her ownership
 interest in the business entity1 or any
 owner of a business entity that sells  
an asset or interest as described in    
subparagraph 7,b74  7ii7 ,senior        
executive official ,for purposes of     
subparagraph 7,d71 the term senior      
executive official means an official who
 was acquired as an employee of the     
buyer through the terms and conditions  
of the sale1 and1 on the day before the 
date of such sale--  7,i7 who was       
employed by the seller2  7,,ii7 who had 
an integral role in the senior executive
 management team of the seller2  7,,iii7
 who was responsible for making or      
directing major decisions of the seller2
 and  7,,iv7 whose rate of compensation 
was in the highest #aj percent of the   

compensation rates for all employees of 
the seller4  7#b7 ,partnership          
dissolution or disassociation  7,a7 ,in 
general ,any partner may1 upon or in    
anticipation of any circumstance        
described in subparagraph 7,b71 enter   
into an agreement with any other member 
of the partnership that the partner will
 not carry on a like business within a  
specified geographic area described in  
subparagraph 7,c71 if any other member  
of the partnership1 or any person       
deriving title to the business or the   
goodwill of the business from any other 
member of the partnership1 carries on a 
like business in such specified         
geographic area4  7,b7 ,circumstances ,a
 circumstance described in this         
subparagraph is either of the following3
 7i7 ,a dissolution of the partnership4 
7ii7 ,dissociation of the partner from  
the partnership4  7,c7 ,specified       
geographic area ,a specified geographic 
area described in this subparagraph is a
 geographic area specified in the       

agreement described in subparagraph 7,a7
 where any business of the partnership  
has been transacted prior to the        
agreement4  #d4 ,trade secrets ,nothing 
in this ,act shall preclude a person    
from entering into an agreement with an 
individual working for the person to not
 share any information 7including after 
the individual is no longer working for 
the person7 regarding the person1 or the
 work performed by the individual for   
the person1 that is a trade secret4  #e4
 ,notice2 public awareness campaign  7a7
 ,notice ,any person who engages an     
individual who performs work for the    
person in commerce or in the production 
of goods for commerce 7or employs an    
individual in an enterprise engaged in  
commerce or in the production of goods  
for commerce7 shall post notice of the  
provisions of this ,act in a conspicuous
 place on the premises of such person4  
7b7 ,public awareness campaign ,the     
,secretary of ,labor may carry out      
activities to make the public aware of  

the provisions of this ,act4  #f4       
,enforcement  7a7 ,federal ,trade       
,commission  7#a7 ,unfair or deceptive  
acts or practices ,a violation of       
section #c or #e7;a7 shall be treated as
 a violation of a rule defining an      
unfair or deceptive act or practice     
prescribed under section                
#ah7;a77#a77;,b7 of the ,federal ,trade 
,commission ,act 7#ae ,u4,s4,c4         
#eg;a7a77#a77;,b774  7#b7 ,powers of    
,commission  7,a7 ,in general ,the      
,federal ,trade ,commission shall       
enforce sections #c and #e7;a7 in the   
same manner1 by the same means1 and with
 the same jurisdiction1 powers1 and     
duties as though all applicable terms   
and provisions of the ,federal ,trade   
,commission ,act 7#ae ,u4,s4,c4 #da et  
seq47 were incorporated into and made a 
part of this ,act4  7,b7 ,privileges and
 immunities ,any person who violates    
section #c or #e7;a7 shall be subject to
 the penalties and entitled to the      
privileges and immunities provided in   

the ,federal ,trade ,commission ,act    
7#ae ,u4,s4,c4 #da et seq474  7b7       
,department of ,labor  7#a7 ,in general 
,the ,secretary of ,labor-- 7,a7 shall  
receive and investigate a complaint of a
 violation of section #c or #e7;a71 if  
the person in violation of such section 
is an employer of one or more employees2
 and  7,b7 may bring an action in any   
court of competent jurisdiction to      
obtain the legal or equitable relief    
against the person described in         
subparagraph 7,a7 on behalf of an       
individual aggrieved by the violation as
 may be appropriate to effectuate the   
purposes of such sections1 subject to   
paragraph 7#b74  7#b7 ,civil fines ,in  
an action described in paragraph        
7#a77;,b71 the court of competent       
jurisdiction described in such paragraph
 shall impose a civil fine on any person
 described in paragraph 7#a77;,a7 who   
violates section #c or #e7;a71 in an    
amount not to exceed #e1jjj for each    
week the person is in such violation4   

,such fine shall be paid to the         
individual aggrieved by such violation4 
7#c7 ,regulations ,not later than #ahj  
days after the date of enactment of this
 ,act1 the ,secretary of ,labor shall   
issue regulations with respect to the   
authority of the ,secretary in enforcing
 violations of section #c or #e7;a7 in  
accordance with this subsection4  7c7   
,standards for dual enforcement ,not    
later than #ij days after the date of   
enactment of this ,act1 the ,federal    
,trade ,commission and the ,secretary of
 ,labor shall1 for the purposes of      
enforcing this ,act--  7#a7 develop     
shared standards for consistent         
enforcement2 and  7#b7 identify the     
scope of responsibility of the ,federal 
,trade ,commission and such scope of the
 ,secretary of ,labor to ensure         
complementary enforcement of this ,act4 
7d7 ,private right of action  7#a7 ,in  
general ,an individual who is aggrieved 
by a violation of this ,act may bring a 
civil action in any appropriate district

 court of the ,united ,states4  7#b7    
,relief ,in a civil action under        
paragraph 7#a71 a court may award-- 7,a7
 any actual damages sustained by the    
individual as a result of the violation2
 and  7,b7 in the case of any successful
 action to enforce any liability under  
this subsection1 the costs of the action
 and reasonable attorney's fees1 as     
determined by the court4  #g4 ,reports  
,not later than #a year after the date  
on which the ,secretary of ,labor issues
 the regulations under section          
#f7;b77#c71 the ,federal ,trade         
,commission and the ,secretary of ,labor
 shall each submit to ,congress a report
 on any actions taken by the ,commission
 or ,secretary1 respectively1 to enforce
 the provisions of this ,act4  #h4      
,definitions ,for purposes of this ,act3
 7#a7 ,business entity ,the term        
business entity means any partnership   
7including a limited partnership or a   
limited liability partnership71 limited 
liability company 7including a series of

 a limited liability company formed     
under the laws of a jurisdiction that   
recognizes such a series71 or           
corporation4  7#b7 ,commerce2 enterprise
 engaged in commerce or in the          
production of goods for commerce2       
person2 ,state ,the terms commerce1     
enterprise engaged in commerce or in the
 production of goods for commerce1      
person1 and ,state have the meanings    
given the terms in section #c of the    
,fair ,labor ,standards ,act of #aich   
7#bi ,u4,s4,c4 #bjc74  7#c7 ,employee2  
employer ,the terms employee and        
employer have the meanings given such   
terms in section #c of the ,fair ,labor 
,standards ,act of #aich 7#bi ,u4,s4,c4 
#bjc74  7#d7 ,noncompete agreement ,the 
term noncompete agreement means an      
agreement1 entered into after the date  
of enactment of this ,act between a     
person and an individual performing work
 for the person1 that restricts such    
individual from performing1 after the   
working relationship between the person 

and individual terminates1 any of the   
following3  7,a7 ,any work for another  
person for a specified period of time4  
7,b7 ,any work in a specified           
geographical area4  7,c7 ,any work for  
another person that is similar to such  
individual's work for the person that is
 a party to such agreement4  7#e7 ,owner
 of a business entity ,the term owner of
 a business entity means-- 7,a7 in the  
case of a business entity that is a     
partnership 7including a limited        
partnership or a limited liability      
partnership71 any partner2  7,b7 in the 
case of a business entity that is a     
limited liability company 7including a  
series of a limited liability company   
formed under the laws of a jurisdiction 
that recognizes such a series71 any     
member of such company2 or  7,c7 in the 
case of a business entity that is a     
corporation1 any owner of capital stock4
  7#f7 ,ownership interest ,the term    
ownership interest means--  7,a7 in the 
case of a business entity that is a     

partnership 7including a limited        
partnership or a limited liability      
partnership71 a partnership interest2   
7,b7 in the case of a business entity   
that is a limited liability company     
7including a series of a limited        
liability company formed under the laws 
of a jurisdiction that recognizes such a
 series71 a membership interest2 or     
7,c7 in the case of a business entity   
that is a corporation1 a capital        
stockholder who owns not less than #e   
percent of the capital stock4  7#g7     
,trade secret ,the term trade secret has
 the meaning given the term in section  
#ahci of title #ah1 ,united ,states     
,code4