,i  #aaf? ,,congress  #b;d ,session  ,h4
 ,r4 #egaj  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,janu>y #bi1 #bjbj,mr4
 ,pet]s 7= himself1 ,mr4 ,gallagh]1 &   
,ms4 ,e%oo7 introduc$ ! foll[+ bill2 :i*
 0 ref]r$ to ! ,committee on ,en]gy &   
,comm]ce1 & 9 addition to ! ,committee  
on ,education & ,labor1 = a p]iod to be 
subsequ5tly det]m9$ by ! ,speak]1 9 ea* 
case = consid]ation ( su* provisions z  
fall )9 ! jurisdiction ( ! committee    
conc]n$  ,a ,,bill  ,to prohibit c]ta9  
noncompete agreem5ts1 & = o!r purposes4 
#a4 ,%ort title ,?is ,act may be cit$ z 
! ,work=ce ,mobility ,act ( #bjbj4  #b4 
,f9d+s ,congress f9ds ! foll[+3  7#a7 ,!
 prolif]ation ( noncompete agreem5ts    
?r\gh\t sectors1 occupational           
categories1 & income brackets is contr>y
 to ,congress's commitm5t to fo/]+      
/rong] wage gr[? = work]s 9 ! ,unit$    
,/ates4 ,economi/s n[ e/imate t #a 9 #e 
work]s is cov]$ by a noncompete         
agreem5t4  7#b7 ,noncompete agreem5ts   
are blunt in/rum5ts t crudely protect   

employ] int]e/s & place a drag on       
national productivity by =c+ cov]$      
work]s to ei!r idle = long p]iods ( "t  
or leave ! indu/ries :]e !y h hon$ _!   
skills altoge!r4  7#c7 ,en=ceable       
noncompete agreem5ts also r$uce wages1  
re/rict work] mobility1 imp+e on work]  
fre$oms to maximize _! labor m>ket      
pot5tial1 & sl[ ! pace ( ,am]ican       
innovation4  7#d7 ,employ]s h access to 
legal rec\rses to protect _! legitimate 
int]e/s & prop]ty1 includ+ trade secret 
protections1 intellectual prop]ty       
protections1 & nondisclosure agreem5ts t
 d n inflict broad collat]al h>m on     
work]s' labor m>ket prospects4  7#e7    
,employ]s t rely on a li/ or li/s (     
v5dors1 cu/om]s1 or cli5ts t are n      
easily obta9$ by an individual ?r\gh    
means o!r ?an ! "w relation%ip h        
adequate legal protection ?r\gh ! use ( 
trade secrets protections &             
nondisclosure agreem5ts4  7#f7          
,noncompete agreem5ts broadly re/rict   
employm5t options = work]s 9 ! ,unit$   

,/ates :5 m n>r[ly t>get$ rem$ies are   
readily available to employ]s4  7#g7    
,fo/]+ an environm5t :]e employ]s c     
fl\ri% is necess>y to promote vitality &
 prosp]ity 9 ! economy4  7#h7 ,employ]s 
may reta9 critical skill$ employees :ile
 ensur+ t dis9c5tives affect+ mobility1 
includ+ noncompete agreem5ts1 d n       
negatively impact ! work=ce 9 ! ,unit$  
,/ates4  #c4 ,prohibit+ noncompete      
agreem5ts  7a7 ,prohibition  7#a7 ,9    
g5]al ,except z provid$ 9 subsection    
7b71 no p]son %all ent] into1 en=ce1 or 
?reat5 to en=ce a noncompete agreem5t ) 
any individual :o p]=ms "w = ! p]son &  
:o 9 any workweek is engag$ 9 comm]ce or
 9 ! production ( goods = comm]ce 7or is
 employ$ 9 an ent]prise engag$ 9 comm]ce
 or 9 ! production ( goods = comm]ce74  
7#b7 ,effect ( agreem5ts ,except z      
provid$ 9 subsection 7b71 a noncompete  
agreem5t describ$ 9 p>agraph 7#a7 %all h
 no =ce or effect4  7b7 ,exceptions     
7#a7 ,sale ( goodwill or own]%ip int]e/ 
7,a7 ,9 g5]al ,any p]son :o sells !     

goodwill ( a bus9ess1 any own] ( a      
bus9ess entity sell+ or o!rwise dispos+ 
( all ( 8 or h] own]%ip int]e/ 9 !      
bus9ess entity1 or any own] ( a bus9ess 
entity t sells an asset or int]e/ z     
describ$ 9 subp>agraph 7,b71 may ent]   
into an agreem5t ) ! buy] to refra9 f   
c>ry+ on a l bus9ess )9 a specifi$      
geographic area describ$ 9 subp>agraph  
7,c71 if ! buy]1 or any p]son d]iv+     
title to ! goodwill or own]%ip int]e/ f 
! buy]1 c>ries on a l bus9ess 9 su*     
specifi$ geographic area4  7,b7 ,asset  
or int]e/ ,an asset or int]e/ describ$ 9
 ?is subp>agraph is-- 7i7 all or        
sub/antially all ( ! op]at+ assets & !  
goodwill ( ! bus9ess entity2  7ii7 all  
or sub/antially all ( ! op]at+ assets ( 
a division1 or a subsidi>y1 ( ! bus9ess 
entity & ! goodwill ( t division or     
subsidi>y2 or  7iii7 all ( ! own]%ip    
int]e/ ( any subsidi>y ( ! bus9ess      
entity4  7,c7 ,specifi$ geographic area 
,a specifi$ geographic area describ$ 9  
?is subp>agraph is a geographic area    

specifi$ 9 ! agreem5t describ$ 9        
subp>agraph 7,a71 or 7,d7 z applicable1 
:]e ! bus9ess1 bus9ess entity1 division1
 or subsidi>y sold z ! subject ( su*    
agreem5t1 has conduct$ bus9ess prior to 
! agreem5t4  7,d7 ,s5ior executive      
(ficials ) sev]ance agreem5ts  7i7 ,9   
g5]al ,any buy] or sell] describ$ 9     
subp>agraph 7,a7 may ent] into an       
agreem5t ) a s5ior executive (ficial :o 
has a sev]ance agreem5t describ$ 9      
clause 7iii7 = ! s5ior executive (ficial
 to refra9 f c>ry+ on a l bus9ess )9 a  
specifi$ geographic area describ$ 9     
subp>agraph 7,c71 if ! buy]1 or any     
p]son d]iv+ title to ! goodwill or      
own]%ip int]e/ f ! buy]1 c>ries on a l  
bus9ess 9 su* specifi$ geographic area4 
7ii7 ,"t-limit$ agreem5t ,an agreem5t   
describ$ 9 clause 7i7 may n require !   
s5ior executive (ficial to refra9 f     
c>ry+ on a l bus9ess z describ$ 9 su*   
clause = a p]iod t is great] ?an "o ye>4
  7iii7 ,sev]ance agreem5t ,a sev]ance  
agreem5t describ$ 9 ?is clause is an    

agreem5t betwe5 ! buy] & ! s5ior        
executive (ficial1 or an agreem5t betwe5
 ! sell] & ! s5ior executive (ficial1   
describ$ 9 clause 7i7 t--  7,i7 is "p ( 
! t]ms & conditions ( ! sale2 &  7,,ii7 
requires monet>y comp5sation = ! s5ior  
executive (ficial 9 ! ev5t ( t]m9ation (
 ! employm5t ( ! s5ior executive (ficial
 at an am\nt t is great] ?an or equal to
 ! comp5sation ! (ficial is reasonably  
expect$ to receive f ! buy] dur+ !      
#a-ye> p]iod foll[+ ! sale4  7,e7       
,def9itions  7i7 ,buy]1 sale1 sell] ,=  
purposes ( ?is p>agraph-- 7,i7 ! t]m    
buy] means1 z describ$ 9 subp>agraph    
7,a71 any p]son :o buys ! goodwill ( a  
bus9ess1 buys or o!rwise acquires       
own]%ip int]e/ 9 a bus9ess entity1 or   
buys an asset or int]e/ z describ$ 9    
subp>agraph 7,b72  7,,ii7 ! t]m sale    
means1 z describ$ 9 subp>agraph 7,a71 ! 
sale ( ! goodwill ( a bus9ess1 ! sale or
 o!r disposal ( all ( ! own]%ip int]e/ (
 ! sell] 9 a bus9ess entity1 or ! sale (
 an asset or int]e/ z describ$ 9        

subp>agraph 7,b72 &  7,,iii7 ! t]m sell]
 means1 z describ$ 9 subp>agraph 7,a71  
any p]son :o sells ! goodwill ( a       
bus9ess1 any own] ( a bus9ess entity    
sell+ or o!rwise dispos+ ( all ( 8 or h]
 own]%ip int]e/ 9 ! bus9ess entity1 or  
any own] ( a bus9ess entity t sells an  
asset or int]e/ z describ$ 9 subp>agraph
 7,b74  7ii7 ,s5ior executive (ficial ,=
 purposes ( subp>agraph 7,d71 ! t]m     
s5ior executive (ficial means an (ficial
 :o 0 acquir$ z an employee ( ! buy]    
?r\gh ! t]ms & conditions ( ! sale1 &1  
on ! day be=e ! date ( su* sale--  7,i7 
:o 0 employ$ by ! sell]2  7,,ii7 :o _h  
an integral role 9 ! s5ior executive    
managem5t team ( ! sell]2  7,,iii7 :o 0 
responsible = mak+ or direct+ major     
decisions ( ! sell]2 &  7,,iv7 ^: rate (
 comp5sation 0 9 ! highe/ #aj p]c5t ( ! 
comp5sation rates = all employees ( !   
sell]4  7#b7 ,p>tn]%ip dissolution or   
disassociation  7,a7 ,9 g5]al ,any p>tn]
 may1 ^u or 9 anticipation ( any        
circum/ance describ$ 9 subp>agraph 7,b71

 ent] into an agreem5t ) any o!r memb] (
 ! p>tn]%ip t ! p>tn] w n c>ry on a l   
bus9ess )9 a specifi$ geographic area   
describ$ 9 subp>agraph 7,c71 if any o!r 
memb] ( ! p>tn]%ip1 or any p]son d]iv+  
title to ! bus9ess or ! goodwill ( !    
bus9ess f any o!r memb] ( ! p>tn]%ip1   
c>ries on a l bus9ess 9 su* specifi$    
geographic area4  7,b7 ,circum/ances ,a 
circum/ance describ$ 9 ?is subp>agraph  
is ei!r ( ! foll[+3 7i7 ,a dissolution (
 ! p>tn]%ip4  7ii7 ,dissociation ( !    
p>tn] f ! p>tn]%ip4  7,c7 ,specifi$     
geographic area ,a specifi$ geographic  
area describ$ 9 ?is subp>agraph is a    
geographic area specifi$ 9 ! agreem5t   
describ$ 9 subp>agraph 7,a7 :]e any     
bus9ess ( ! p>tn]%ip has be5 transact$  
prior to ! agreem5t4  #d4 ,trade secrets
 ,no?+ 9 ?is ,act %all preclude a p]son 
f ent]+ into an agreem5t ) an individual
 work+ = ! p]son to n %>e any in=mation 
7includ+ aft] ! individual is no long]  
work+ = ! p]son7 reg>d+ ! p]son1 or ! "w
 p]=m$ by ! individual = ! p]son1 t is a

 trade secret4  #e4 ,notice2 public     
aw>5ess campaign  7a7 ,notice ,any p]son
 :o engages an individual :o p]=ms "w = 
! p]son 9 comm]ce or 9 ! production (   
goods = comm]ce 7or employs an          
individual 9 an ent]prise engag$ 9      
comm]ce or 9 ! production ( goods =     
comm]ce7 %all po/ notice ( ! provisions 
( ?is ,act 9 a conspicu\s place on !    
premises ( su* p]son4  7b7 ,public      
aw>5ess campaign ,! ,secret>y ( ,labor  
may c>ry out activities to make ! public
 aw>e ( ! provisions ( ?is ,act4  #f4   
,en=cem5t  7a7 ,f$]al ,trade ,commission
  7#a7 ,unfair or deceptive acts or     
practices ,a violation ( section #c or  
#e7;a7 %all be treat$ z a violation ( a 
rule def9+ an unfair or deceptive act or
 practice prescrib$ "u section          
#ah7;a77#a77;,b7 ( ! ,f$]al ,trade      
,commission ,act 7#ae ,u4,s4,c4         
#eg;a7a77#a77;,b774  7#b7 ,p[]s (       
,commission  7,a7 ,9 g5]al ,! ,f$]al    
,trade ,commission %all en=ce sections  
#c & #e7;a7 9 ! same mann]1 by ! same   

means1 & ) ! same jurisdiction1 p[]s1 & 
duties z ?\gh all applicable t]ms &     
provisions ( ! ,f$]al ,trade ,commission
 ,act 7#ae ,u4,s4,c4 #da et seq47 7     
incorporat$ into & made a "p ( ?is ,act4
  7,b7 ,privileges & immunities ,any    
p]son :o violates section #c or #e7;a7  
%all be subject to ! p5alties & entitl$ 
to ! privileges & immunities provid$ 9 !
 ,f$]al ,trade ,commission ,act 7#ae    
,u4,s4,c4 #da et seq474  7b7 ,dep>tm5t (
 ,labor  7#a7 ,9 g5]al ,! ,secret>y (   
,labor-- 7,a7 %all receive & inve/igate 
a compla9t ( a violation ( section #c or
 #e7;a71 if ! p]son 9 violation ( su*   
section is an employ] ( "o or m         
employees2 &  7,b7 may br+ an action 9  
any c\rt ( compet5t jurisdiction to     
obta9 ! legal or equitable relief aga9/ 
! p]son describ$ 9 subp>agraph 7,a7 on  
behalf ( an individual aggriev$ by !    
violation z may be appropriate to       
effectuate ! purposes ( su* sections1   
subject to p>agraph 7#b74  7#b7 ,civil  
f9es ,9 an action describ$ 9 p>agraph   

7#a77;,b71 ! c\rt ( compet5t            
jurisdiction describ$ 9 su* p>agraph    
%all impose a civil f9e on any p]son    
describ$ 9 p>agraph 7#a77;,a7 :o        
violates section #c or #e7;a71 9 an     
am\nt n to exce$ #e1jjj = ea* week !    
p]son is 9 su* violation4 ,su* f9e %all 
be paid to ! individual aggriev$ by su* 
violation4  7#c7 ,regulations ,n lat]   
?an #ahj days aft] ! date ( enactm5t (  
?is ,act1 ! ,secret>y ( ,labor %all     
issue regulations ) respect to !        
au?ority ( ! ,secret>y 9 en=c+          
violations ( section #c or #e7;a7 9     
accordance ) ?is subsection4  7c7 ,/&>ds
 = dual en=cem5t ,n lat] ?an #ij days   
aft] ! date ( enactm5t ( ?is ,act1 !    
,f$]al ,trade ,commission & ! ,secret>y 
( ,labor %all1 = ! purposes ( en=c+ ?is 
,act--  7#a7 develop %>$ /&>ds =        
consi/5t en=cem5t2 &  7#b7 id5tify !    
scope ( responsibility ( ! ,f$]al ,trade
 ,commission & su* scope ( ! ,secret>y (
 ,labor to ensure complem5t>y en=cem5t (
 ?is ,act4  7d7 ,private "r ( action    

7#a7 ,9 g5]al ,an individual :o is      
aggriev$ by a violation ( ?is ,act may  
br+ a civil action 9 any appropriate    
di/rict c\rt ( ! ,unit$ ,/ates4  7#b7   
,relief ,9 a civil action "u p>agraph   
7#a71 a c\rt may aw>d-- 7,a7 any actual 
damages su/a9$ by ! individual z a      
result ( ! violation2 &  7,b7 9 ! case (
 any successful action to en=ce any     
liability "u ?is subsection1 ! co/s ( ! 
action & reasonable attorney's fees1 z  
det]m9$ by ! c\rt4  #g4 ,reports ,n lat]
 ?an #a ye> aft] ! date on :i* !        
,secret>y ( ,labor issues ! regulations 
"u section #f7;b77#c71 ! ,f$]al ,trade  
,commission & ! ,secret>y ( ,labor %all 
ea* submit to ,congress a report on any 
actions tak5 by ! ,commission or        
,secret>y1 respectively1 to en=ce !     
provisions ( ?is ,act4  #h4 ,def9itions 
,= purposes ( ?is ,act3 7#a7 ,bus9ess   
entity ,! t]m bus9ess entity means any  
p>tn]%ip 7includ+ a limit$ p>tn]%ip or a
 limit$ liability p>tn]%ip71 limit$     
liability company 7includ+ a s]ies ( a  

limit$ liability company =m$ "u ! laws (
 a jurisdiction t recognizes su* a      
s]ies71 or corporation4  7#b7 ,comm]ce2 
ent]prise engag$ 9 comm]ce or 9 !       
production ( goods = comm]ce2 p]son2    
,/ate ,! t]ms comm]ce1 ent]prise engag$ 
9 comm]ce or 9 ! production ( goods =   
comm]ce1 p]son1 & ,/ate h ! mean+s giv5 
! t]ms 9 section #c ( ! ,fair ,labor    
,/&>ds ,act ( #aich 7#bi ,u4,s4,c4      
#bjc74  7#c7 ,employee2 employ] ,! t]ms 
employee & employ] h ! mean+s giv5 su*  
t]ms 9 section #c ( ! ,fair ,labor      
,/&>ds ,act ( #aich 7#bi ,u4,s4,c4      
#bjc74  7#d7 ,noncompete agreem5t ,! t]m
 noncompete agreem5t means an agreem5t1 
ent]$ into aft] ! date ( enactm5t ( ?is 
,act betwe5 a p]son & an individual     
p]=m+ "w = ! p]son1 t re/ricts su*      
individual f p]=m+1 aft] ! work+        
relation%ip betwe5 ! p]son & individual 
t]m9ates1 any ( ! foll[+3  7,a7 ,any "w 
= ano!r p]son = a specifi$ p]iod ( "t4  
7,b7 ,any "w 9 a specifi$ geographical  
area4  7,c7 ,any "w = ano!r p]son t is  

simil> to su* individual's "w = ! p]son 
t is a p>ty to su* agreem5t4  7#e7 ,own]
 ( a bus9ess entity ,! t]m own] ( a     
bus9ess entity means-- 7,a7 9 ! case ( a
 bus9ess entity t is a p>tn]%ip 7includ+
 a limit$ p>tn]%ip or a limit$ liability
 p>tn]%ip71 any p>tn]2  7,b7 9 ! case ( 
a bus9ess entity t is a limit$ liability
 company 7includ+ a s]ies ( a limit$    
liability company =m$ "u ! laws ( a     
jurisdiction t recognizes su* a s]ies71 
any memb] ( su* company2 or  7,c7 9 !   
case ( a bus9ess entity t is a          
corporation1 any own] ( capital /ock4   
7#f7 ,own]%ip int]e/ ,! t]m own]%ip     
int]e/ means--  7,a7 9 ! case ( a       
bus9ess entity t is a p>tn]%ip 7includ+ 
a limit$ p>tn]%ip or a limit$ liability 
p>tn]%ip71 a p>tn]%ip int]e/2  7,b7 9 ! 
case ( a bus9ess entity t is a limit$   
liability company 7includ+ a s]ies ( a  
limit$ liability company =m$ "u ! laws (
 a jurisdiction t recognizes su* a      
s]ies71 a memb]%ip int]e/2 or  7,c7 9 ! 
case ( a bus9ess entity t is a          

corporation1 a capital /ockhold] :o owns
 n less ?an #e p]c5t ( ! capital /ock4  
7#g7 ,trade secret ,! t]m trade secret  
has ! mean+ giv5 ! t]m 9 section #ahci (
 title #ah1 ,unit$ ,/ates ,code4