The Workforce Mobility Act prohibits individuals from entering into non-compete agreements, and it voids current non-compete agreements. The bill has a couple of agreements, and it voids current non-compete agreements. The bill has a couple of exceptions, including the sale of a business and the dissolution of a partnership.
If enacted, the Workforce Mobility Act would require employers to post and maintain provisions of the act in a conspicuous place where all employees or potential employees can access the information.
The Act would also give the Federal Trade Commission (FTC) and the Department of Labor (DOL) enforcement authority, and it would provide a private right of action for an employee to bring an enforcement action against an employer for a violation of the law. The bill would also allow state attorneys general to bring claims against employers for violations of the Workforce Mobility Act.
In June of 2025, Senators Murphy and Young reintroduced the Act once again—this time, against the backdrop of last year’s FTC Rule banning non-competes, which was ultimately challenged and set aside by a federal court in Texas.
The 2025 version of the Workforce Mobility Act has not yet been released, but Senators Murphy and Young continue to advocate for a federal ban on non-compete agreements.
Senator Murphy emphasized that non-competes trap low-wage workers, suppress wages, and harm entrepreneurship, urging Congress to codify the FTC’s proposed ban. Echoing that sentiment, Senator Young called non-competes a barrier to growth, innovation, and worker freedom and framed the bill as a way to unlock opportunity by letting workers apply their skills where they’re most needed.
John Lettieri, President and CEO of the Economic Innovation Group (EIG), called the Workforce Mobility Act a no-cost, pro-worker, pro-growth reform that removes a major barrier to opportunity. He stated that non-compete clauses suppress wages, block innovation, and limit worker mobility, arguing that ending them will boost entrepreneurship and make the economy more competitive.
EIG’s support is echoed by a broad coalition of medical associations, policy think tanks, business groups, and employers, including the American College of Emergency Physicians, Small Business Majority, and Veeva Systems.
As lawmakers continue to push for a permanent federal ban on non-competes, employers should stay informed on how federal and state-level changes could impact their contracts and hiring practices.
Stay ahead of the curve—evaluate your restrictive covenants and consult counsel to ensure your workforce strategy aligns with emerging legal trends.
