October 17, 2019
Young and Murphy Introduce Bill to Limit Non-Compete Agreements, Protect Workers
WASHINGTON – U.S. Senators Todd Young (R-Ind.) and Chris Murphy (D-Conn.) introduced the Workforce Mobility Act, bipartisan legislation to limit the use of non-compete agreements that negatively impact American workers. Senator Young and Senator Murphy recently led a bipartisan Senate letter urging the Government Accountability Office (GAO) to investigate the use and abuse of non-competes.
An alarming 40 percent of American workers have been constrained by a non-compete agreement at some point in their careers. Non-competes often lack transparency and result in lower wages. Research indicates that workers trapped by non-competes are less mobile, which results in firms having difficulty hiring workers with the right set of skills. In states where non-competes are enforced, young firms are more likely to die in their first three years compared to states where they are not enforced.
“Non-compete agreements stifle wage growth, career advancement, innovation, and business creation. Our bill aims to remove these barriers, and create opportunities that help, not hinder, Hoosier workers,” said Senator Young. “A complete reform of non-competes will empower our workers and entrepreneurs so they can freely apply their talents where their skills are in greatest demand.”
“Non-compete agreements are economic and innovation killers. Too many employers hide these agreements in low-wage workers’ contracts, trapping them in low-paying jobs and preventing real competition. In Connecticut, it doesn’t matter if you’re working at a fast food restaurant or a tech startup, people want the freedom to change jobs and earn higher wages. This bill helps them do both,” said Senator Murphy.
The Workforce Mobility Act would:
The full bill text can be viewed here.
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