,,ii  #aah? ,,congress  #a/ ,session    
,s4 #bbj  ,,9 ,,! ,,s5ate ,,( ,,!       
,,unit$ ,,/ates  ,febru>y #a1 #bjbc,mr4 
,murphy 7= himself1 ,mr4 ,"y1 ,mr4      
,ka9e1 & ,mr4 ,cram]7 introduc$ ! foll[+
 bill2 :i* 0 read twice & ref]r$ to !   
,committee on ,heal?1 ,education1       
,labor1 & ,p5sions  ,a ,,bill  ,to      
prohibit c]ta9 noncompete agreem5ts1 & =
 o!r purposes4  #a4 ,%ort title ,?is    
,act may be cit$ z ! ,work=ce ,mobility 
,act ( #bjbc4  #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 ! commitm5t (    
,congress 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 9 :i* ! work]s h   

hon$ _! skills altoge!r4  7#c7          
,en=ceable noncompete agreem5ts also    
r$uce wages1 re/rict work] mobility1    
imp+e on ! fre$om ( a work] to maximize 
labor m>ket pot5tial1 & sl[ ! pace (    
innovation 9 ! ,unit$ ,/ates4  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 ! labor m>ket    
prospects = work]s4  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 secret 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 
attempt to en=ce a noncompete agreem5t )
 any individual :o is employ$ by1 or    
p]=ms "w "u contract )1 su* p]son )     
respect to ! activities ( su* p]son 9 or
 affect+ comm]ce4  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 ,a     
sell] ( a bus9ess entity 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 ( ! bus9ess entity or an       

own]%ip int]e/ 9 ! bus9ess entity f !   
buy]1 c>ries on a l bus9ess 9 su*       
specifi$ geographic area4  7,b7 ,s5ior  
executive (ficials ) sev]ance agreem5ts 
7i7 ,9 g5]al ,subject to clause 7ii71 a 
buy] or sell] ( a bus9ess entity may    
ent] into a noncompete agreem5t ) a     
s5ior executive (ficial :o has a        
sev]ance agreem5t describ$ 9 clause     
7iii7 t re/ricts ! s5ior executive      
(ficial f p]=m+1 )9 a specifi$          
geographic area describ$ 9 subp>agraph  
7,c71 any "w t is simil> to ! "w t !    
s5ior executive (ficial p]=m$ = ! buy]  
or sell]1 if ! buy]1 or any p]son d]iv+ 
title to ! goodwill ( ! bus9ess entity  
or an own]%ip int]e/ 9 ! bus9ess entity 
f ! buy]1 c>ries on a l bus9ess 9 su*   
specifi$ geographic area4  7ii7         
,"t-limit$ agreem5t ,a noncompete       
agreem5t describ$ 9 clause 7i7 may n    
re/rict ! s5ior executive (ficial z     
describ$ 9 su* clause = a p]iod t is m  
?an "o ye>4  7iii7 ,sev]ance agreem5t ,a
 sev]ance agreem5t describ$ 9 ?is clause

 is an agreem5t betwe5 ! buy] or sell] (
 a bus9ess entity & a s5ior executive   
(ficial 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 n less ?an ! comp5sation 
t ! s5ior executive (ficial is or w\ld  
be reasonably expect$ to receive f !    
buy] dur+ ! #a-ye> p]iod foll[+ ! sale4 
7,c7 ,specifi$ geographic area ,a       
specifi$ geographic area describ$ 9 ?is 
subp>agraph is a geographic area-- 7i7 t
 is specifi$ 9 an agreem5t describ$ 9   
subp>agraph 7,a71 or a noncompete       
agreem5t describ$ 9 subp>agraph 7,b71   
reg>d+ a bus9ess entity2 &  7ii7 9 :i*  
su* bus9ess entity1 includ+ any division
 or subsidi>y ( su* bus9ess entity1     
conduct$ bus9ess prior to ! agreem5t or 
noncompete agreem5t4  7#b7 ,p>tn]%ip    
dissolution or disassociation  7,a7 ,9  
g5]al ,any p>tn] ( a p>tn]%ip may ent]  
into an agreem5t ) any o!r memb] ( !    

p>tn]%ip t1 ^u ! dissolution ( !        
p>tn]%ip or dissociation ( ! p>tn] f su*
 p>tn]%ip1 ! p>tn] w refra9 f c>ry+ on a
 l bus9ess )9 a specifi$ geographic area
 describ$ 9 subp>agraph 7,b71 if any o!r
 memb] ( ! p>tn]%ip1 or any p]son d]iv+ 
title to ! p>tn]%ip or ! goodwill ( !   
p>tn]%ip f any o!r memb] ( ! p>tn]%ip1  
c>ries on a l bus9ess 9 su* specifi$    
geographic area4  7,b7 ,specifi$        
geographic area ,a specifi$ geographic  
area describ$ 9 ?is subp>agraph is a    
geographic area-- 7i7 t is specifi$ 9 an
 agreem5t describ$ 9 subp>agraph 7,a72 &
  7ii7 9 :i* 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 :o is employ$  
by1 or p]=ms "w "u contract )1 su* p]son
 ) respect to ! activities ( su* p]son 9
 or affect+ comm]ce to n disclose any   
in=mation 7includ+ aft] ! individual is 
no long] employ$ or p]=m+ "w = ! 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 is employ$ by1 
or p]=ms "w "u contract )1 su* p]son )  
respect to ! activities ( su* p]son 9 or
 affect+ comm]ce %all po/ & ma9ta9      
notice ( ! provisions ( ?is ,act-- 7#a7 
9 a conspicu\s place on ! premises ( su*
 p]son2 or  7#b7 9 a conspicu\s place   
:]e notices to employees & applicants = 
employm5t are cu/om>ily po/$ physically 
or electronically by 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$]al ,trade ,commission ,act 7#ae    
,u4,s4,c4 #da et seq474  7,c7 ,au?ority 
pres]v$ ,no?+ 9 ?is ,act %all be con/ru$
 to limit ! au?ority ( ! ,f$]al ,trade  
,commission "u any o!r provision ( law4 
7b7 ,dep>tm5t ( ,labor  7#a7 ,9 g5]al ,!
 ,secret>y ( ,labor-- 7,a7 %all         
inve/igate z ! ,secret>y det]m9es       
necess>y to det]m9e violations ( section
 #c or #e7;a7 by an employ]2 &  7,b7    
may1 subject to p>agraph 7#b71 br+ an   
action 9 any c\rt ( compet5t            
jurisdiction to obta9 ! legal or        

equitable relief aga9/ an employ] on    
behalf ( an individual aggriev$ by !    
violation z may be appropriate to       
effectuate ! purposes ( su* sections4   
7#b7 ,/atute ( limitations ,an action   
describ$ 9 p>agraph 7#a77;,b7 may n be  
comm5c$ lat] ?an #d ye>s aft] ! date on 
:i* ! violation occurr$4  7#c7          
,regulations ,n lat] ?an #ah mon?s aft] 
! date ( enactm5t ( ?is ,act1 !         
,secret>y ( ,labor1 9 consultation ) !  
,*air ( ! ,f$]al ,trade ,commission1    
%all issue regulations z necess>y to    
c>ry out ?is ,act1 includ+ ) respect to 
! au?ority ( ! ,secret>y ( ,labor to    
en=ce violations ( section #c or #e7;a7 
9 accordance ) p>agraph 7#a74  7c7      
,/&>ds = dual en=cem5t ,n lat] ?an #a   
ye> 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 ,report+ violations     
7#a7 ,9 g5]al ,! ,f$]al ,trade          
,commission & ! ,secret>y ( ,labor %all 
ea* e/abli% a sy/em to receive compla9ts
 by individuals reg>d+ alleg$ violations
 ( section #c4  7#b7 ,confid5tiality    
,except z o!rwise requir$ by law1 !     
,f$]al ,trade ,commission & ! ,secret>y 
( ,labor may n disclose ! id5tity or    
id5tify+ in=mation ( any individual     
provid+ a compla9t "u p>agraph 7#a71 )\t
 explicit cons5t f ! individual4  7e7   
,private "r ( action  7#a7 ,9 g5]al ,an 
individual :o is aggriev$ 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 action1 !
 co/s ( ! action & reasonable attorney's
 fees1 z det]m9$ by ! c\rt4  7f7        
,en=cem5t by ,/ates  7#a7 ,9 g5]al ,9   

any case 9 :i* ! attorney g5]al ( a     
,/ate has reason to believe t an int]e/ 
( ! resid5ts ( ! ,/ate has be5 or is    
?reat5$ or adv]sely affect$ by any p]son
 :o violates any provision ( section #c 
or #e7;a7 or any rule promulgat$ "u ?is 
,act to c>ry out su* section1 ! attorney
 g5]al ( ! ,/ate1 z p>5s patriae1 may   
br+ a civil action on behalf ( !        
resid5ts ( ! ,/ate 9 an appropriate     
,/ate c\rt or an appropriate di/rict    
c\rt ( ! ,unit$ ,/ates to-- 7,a7 enjo9  
any fur!r su* violation by ! p]son2     
7,b7 compel compliance ) section #c or  
#e7;a7 or any su* rule2  7,c7 obta9 a   
p]man5t1 tempor>y1 or prelim9>y         
injunction2  7,d7 obta9 damages1        
re/itution1 or o!r comp5sation on behalf
 ( ! resid5ts ( ! ,/ate2 or  7,e7 obta9 
any o!r appropriate equitable relief4   
7#b7 ,pres]vation ( /ate p[]s ,no?+ 9   
?is subsection %all be con/ru$ z alt]+1 
limit+1 or affect+ ! au?ority ( !       
attorney g5]al ( a ,/ate to-- 7,a7 br+  
an action or o!r regulatory proce$+     

aris+ solely "u ! laws 9 effect 9 t     
,/ate2 or  7,b7 ex]cise ! p[]s conf]r$  
on ! attorney g5]al by ! laws ( ! ,/ate1
 includ+ ! ability to conduct           
inve/igations1 adm9i/] oa?s or          
affirmations1 or compel ! att5dance (   
witnesses or ! production ( docum5t>y or
 o!r evid5ce4  7g7 ,arbitration & class 
action ,not)/&+ any o!r provision ( law1
 no pr$ispute arbitration agreem5t or   
pr$ispute jo9t-action waiv] %all be     
valid or en=ceable ) respect to any     
alleg$ violation ( section #c or #e7;a74
  #g4 ,reports ,n lat] ?an #a ye> aft] !
 date on :i* ! ,secret>y ( ,labor issues
 any regulations "u section #f7;b77#c71 
! ,f$]al ,trade ,commission & !         
,secret>y ( ,labor %all ea* submit to   
,congress a report on any actions tak5  
by ! ,f$]al ,trade ,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 ,buy] ,!  
t]m buy]1 ) respect to a bus9ess entity1
 means any p]son :o buys ! goodwill ( ! 
bus9ess entity1 buys or o!rwise acquires
 own]%ip int]e/ 9 ! bus9ess entity1 or  
buys a qualifi$ asset or int]e/ ) reg>d 
to ! bus9ess entity4  7#c7 ,class action
 ,! t]m class action means a lawsuit 9  
:i* #a or m p>ties seek or obta9 class  
treatm5t pursuant to rule #bc ( ! ,f$]al
 ,rules ( ,civil ,proc$ure or a         
comp>able rule or provision ( ,/ate law4
  7#d7 ,comm]ce ,! t]m comm]ce has !    
mean+ giv5 ! t]m 9 section #c ( ! ,fair 
,labor ,/&>ds ,act ( #aich 7#bi         
,u4,s4,c4 #bjc74  7#e7 ,employ2         
,employee2 employ] ,! t]ms employ1      
employee1 & employ] h ! mean+s giv5 su* 
t]ms 9 section #c ( su* ,act 7#bi       
,u4,s4,c4 #bjc74  7#f7 ,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* individual1 aft] !
 work+ relation%ip betwe5 ! p]son &     
individual t]m9ates1 f p]=m+-- 7,a7 any 
"w = ano!r p]son = a specifi$ p]iod (   
"t2  7,b7 any "w 9 a specifi$           
geographical area2 or  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#g7 ,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 a capital /ockhold] ( !    
bus9ess entity :o owns n less ?an #e    

p]c5t ( ! capital /ock4  7#h7 ,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 n less ?an #e
 p]c5t ( ! capital /ock ( ! bus9ess     
entity or1 z applicable1 a subsidi>y ( !
 bus9ess entity4  7#i7 ,p]son ,! t]m    
p]son has ! mean+ giv5 ! t]m 9 section  
#c ( ! ,fair ,labor ,/&>ds ,act ( #aich 
7#bi ,u4,s4,c4 #bjc74  7#aj7 ,pr$ispute 
arbitration agreem5t ,! t]m pr$ispute   
arbitration agreem5t means an agreem5t  
to arbitrate a dispute t has n yet aris5
 at ! "t ( ! mak+ ( ! agreem5t4  7#aa7  
,pr$ispute jo9t-action waiv] ,! t]m     
pr$ispute jo9t-action waiv] means an    
agreem5t1 :e!r or n "p ( a pr$ispute    

arbitration agreem5t1 t w\ld prohibit1  
or waive ! "r (1 "o ( ! p>ties to !     
agreem5t to p>ticipate 9 a jo9t1 class1 
or collective action 9 a judicial1      
arbitral1 adm9i/rative1 or o!r =um1     
conc]n+ a dispute t has n yet aris5 at !
 "t ( ! mak+ ( ! agreem5t4  7#ab7       
,qualifi$ asset or int]e/ ,! t]m        
qualifi$ asset or int]e/1 ) respect to a
 bus9ess entity1 means an asset or      
int]e/ t is-- 7,a7 all or sub/antially  
all ( ! op]at+ assets & ! goodwill ( !  
bus9ess entity2  7,b7 all or            
sub/antially all ( ! op]at+ assets ( a  
division1 or a subsidi>y1 ( ! bus9ess   
entity & ! goodwill ( t division or     
subsidi>y2 or  7,c7 all ( ! own]%ip     
int]e/ ( any subsidi>y ( ! bus9ess      
entity4  7#ac7 ,sale ,! t]m sale1 )     
respect to a bus9ess entity1 means !    
sale ( ! goodwill ( ! bus9ess entity1 ! 
sale or o!r disposal ( all ( ! own]%ip  
int]e/ ( a sell] 9 ! bus9ess entity1 or 
! sale ( a qualifi$ asset or int]e/ )   
reg>d to ! bus9ess entity4  7#ad7 ,sell]

 ,! t]m sell]1 ) respect to a bus9ess   
entity1 means any p]son :o sells !      
goodwill ( ! bus9ess entity1 any own] ( 
! bus9ess entity sell+ or o!rwise       
dispos+ ( all ( 8 or h] own]%ip int]e/ 9
 ! bus9ess entity1 or any own] ( !      
bus9ess entity t sells a qualifi$ asset 
or int]e/ ) reg>d to ! bus9ess entity4  
7#ae7 ,s5ior executive (ficial ,! t]m   
s5ior executive (ficial1 ) respect to a 
sale1 means an (ficial :o 0 acquir$ z an
 employee ( ! buy] 9 su* sale ?r\gh !   
t]ms & conditions ( ! sale1 &1 on ! day 
be=e ! date ( su* sale-- 7,a7 :o 0      
employ$ by ! sell] 9 su* sale2  7,b7 :o 
0 responsible = mak+ or direct+ major   
decisions ( ! sell]2 &  7,c7 ^: rate (  
comp5sation 0 9 ! highe/ #aj p]c5t ( !  
comp5sation rates = all employees ( !   
sell]4  7#af7 ,trade secret ,! t]m trade
 secret has ! mean+ giv5 ! t]m 9 section
 #ahci ( title #ah1 ,unit$ ,/ates ,code4