Federal Legislators Propose Noncompete Ban – UPDATE

Yesterday, I posted about the bills to ban noncompetes at the federal level: Federal Legislators Propose Noncompete Ban.

Only the House bill was available on line; the Senate bill was not.

While the Senate bill remains unavailable online, I have the text and am posting it here.

Below are some of the key provisions:

The prohibition on the use of noncompetes is slightly different from the House version, and provides as follows:

No employer shall enter into, enforce, or threaten to enforce a covenant not to compete with any employee of such employer, who in any workweek is engaged in commerce or in the production of goods for commerce (or is employed in an enterprise engaged in commerce or in the production of goods for commerce).

The bill also requires that employers “post notice of the provisions of this Act in a conspicuous place on the premises of such employer.”

In addition to a private right of action (like the House bill), enforcement is through the Secretary of Labor:

The Secretary shall receive, investigate, attempt to resolve, and enforce a complaint of a violation of section 2 in the same manner that the Sec- retary receives, investigates, and attempts to resolve a complaint of a violation of section 6 or 7 of the Fair Labor Standards Act of 1938 (29 U.S.C. 206 and 207), subject to subsection (b).

Fines are, essentially, $5,000 per week per violation.

We’ll see where the dual bills go from here.

 

 

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