The Workforce Mobility Act of 2025 prohibits most noncompete agreements between employers and workers, with the goal of increasing worker mobility and wage growth. Currently, about one in five American workers are bound by noncompete agreements that prevent them from working for competitors or in certain fields after leaving a job, which Congress finds reduces wages and slows innovation. The bill creates narrow exceptions allowing noncompete agreements only in two situations: when someone sells a business (allowing the seller to avoid competing in that area for a reasonable time), and when senior executives receive substantial severance packages during a business sale (limited to one year). The bill preserves other employer protections like trade secret laws and nondisclosure agreements. Enforcement falls to the Federal Trade Commission and the Department of Labor, with workers also allowed to sue violators directly in federal court and potentially recover damages plus attorney fees. The Secretary of Labor must issue detailed regulations within 18 months, and both agencies must coordinate enforcement standards and report back to Congress annually on their actions.
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