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119-hr-10879119th CongressWALLET

Workers’ Right to Compete Act

Sponsored By: Representative Khanna, Ro [D-CA-17]

Introduced

Summary

No summary available.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Ban on noncompetes for lower-paid workers

If enacted, the bill would make noncompete agreements unenforceable for anyone whose actual or expected annual cash pay from an employer is under $100,000. The $100,000 level would rise each year after 2026 based on the CPI‑U inflation measure compared to 2026. The rule would apply to agreements made before or after enactment. For current workers, pay is measured when the noncompete is imposed or enforced; for former workers, pay is measured when the job ended. For jobs of 12 months or more, variable cash pay (bonuses, commissions) would count using the prior 12 months; for shorter jobs, variable pay would count only if guaranteed. The bill would not count equity or stock-based pay. Employers would have to give written notice that a prohibited noncompete is unenforceable within 30 days for existing or former relationships and within 30 days after a new relationship starts. The bill would still allow nondisclosure agreements that protect trade secrets and qualifying confidential business information, and it would not treat general skills, training, or public information as confidential business information.

Enforcement and state noncompete protections

If enacted, the Federal Trade Commission would treat breaches of the ban and notice rules as unfair or deceptive acts and could use its enforcement powers and penalties. If enacted, State attorneys general could sue to stop violations, force compliance, and seek damages or restitution for residents. The bill would not preempt State laws that give greater protection against noncompete agreements, so stronger State protections would remain in place.

Sponsors & CoSponsors

Sponsor

Khanna, Ro [D-CA-17]

CA • D

Cosponsors

  • Rep. Luna, Anna Paulina [R-FL-13]

    FL • R

    Sponsored 10/22/2026

Roll Call Votes

No roll call votes available for this bill.

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