Workforce Mobility Act of 2025
Sponsored By: Senator Murphy, Christopher [D-CT]
Introduced
Summary
Nationwide ban on most noncompete agreements. This bill would bar employers and entities that contract with workers from entering into or enforcing noncompetes that affect commerce, while allowing three narrow exceptions for business sales, partnership dissolutions, and trade-secret nondisclosure.
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- Workers and contractors: Most employees and independent contractors could no longer be forced into noncompetes, making it easier to change jobs or start businesses. Trade-secret nondisclosure agreements would still be allowed.
- Sellers and partners: In a business sale or partnership breakup, parties could still agree to geographic noncompetes. Senior executives could be limited only in a sale and only for up to one year, and only if their pay ranks among the top 10 percent of seller-employees.
- Enforcement and rules: The Federal Trade Commission and the Department of Labor would share enforcement and individuals and states could sue for damages and attorney fees. Agencies would have a four-year statute of limitations and must issue implementing regulations within 18 months, and predispute arbitration and joint-action waivers would be unenforceable for alleged violations.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
Ban on most noncompete agreements
If enacted, the bill would bar most noncompete agreements for people who work in commerce. Employers could not enter into or enforce noncompetes signed after enactment. Narrow exceptions would allow geographic limits in some business sales and some partnership dissolutions. A one-year noncompete could apply to a qualifying senior executive if the executive meets strict pay and severance rules. Nondisclosure agreements that protect trade secrets would still be allowed. The bill also defines key terms, including a 5% ownership threshold and a senior executive test tied to the top 10% of pay.
New enforcement and court rights for workers
If enacted, the Department of Labor could investigate and sue over violations. The FTC would treat violations as unfair or deceptive acts and enforce them under the FTC Act. You could file a confidential complaint with either agency. Individuals could sue in federal court for actual damages and, if successful, recover costs and reasonable attorney fees. State attorneys general could also sue for residents. Predispute arbitration and class-waiver clauses could not block these claims. The Secretary must issue rules within 18 months, agencies must coordinate within 1 year, and lawsuits must start within 4 years of a violation.
Sponsors & CoSponsors
Sponsor
Murphy, Christopher [D-CT]
CT • D
Cosponsors
Sen. Young, Todd [R-IN]
IN • R
Sponsored 6/11/2025
Sen. Cramer, Kevin [R-ND]
ND • R
Sponsored 6/11/2025
Sen. Kaine, Tim [D-VA]
VA • D
Sponsored 6/11/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov