A PYMNTS Company

Bipartisan Senators Reintroduce Bill to Curb Use of Non-Competes

By  |  June 12, 2025

A bipartisan group of U.S. senators has renewed efforts to curb the widespread use of non-compete agreements in American workplaces. On Wednesday, Senators Chris Murphy (D-Conn.) and Todd Young (R-Ind.) reintroduced the Workforce Mobility Act, a legislative proposal aimed at restricting the use of non-compete clauses that limit job mobility and wage growth for millions of U.S. workers. Senators Tim Kaine (D-Va.) and Kevin Cramer (R-N.D.) joined the effort as co-sponsors.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    According to a statement released by the senators, roughly 30 million workers in the United States—about one in five—are currently bound by non-compete agreements that prevent them from joining competing companies or launching their own businesses in the same field. These contractual restrictions have come under increasing scrutiny for their impact on wages and employment opportunities, particularly in low-wage industries.

    Per a statement from the sponsors, the Workforce Mobility Act would sharply limit the application of non-compete clauses to only rare circumstances, such as when a business is sold or a partnership is dissolved. The legislation also includes enforcement mechanisms by empowering both the Federal Trade Commission (FTC) and the Department of Labor (DOL) to ensure compliance. Additionally, workers would gain the right to take legal action in federal court if their rights under the law are violated.

    Read more: Bipartisan Group of State AGs Press Congress to Nix 10-Year Moratorium on AI Laws

    The bill also includes transparency measures, requiring employers to inform employees about their rights regarding non-competes. According to a statement, studies have shown that many non-compete agreements are implemented even in situations where they are legally unenforceable. The DOL would be tasked with raising public awareness on the limitations of such agreements.

    In a continuing push for accountability, the proposed legislation mandates that both the FTC and DOL submit reports to Congress detailing any enforcement actions taken under the law.

    According to a statement from the lawmakers, non-compete clauses have a chilling effect on entrepreneurship and limit labor mobility—particularly in states where such contracts are enforceable. Research has linked these practices to stunted business growth and decreased competition, especially among new ventures. In those states, new firms reportedly face higher failure rates during their early years.

    The reintroduction of the Workforce Mobility Act follows a broader movement to reassess the legal framework surrounding employment contracts. The FTC has proposed a rule to ban non-competes nationwide, a move praised by the bill’s sponsors. However, supporters of the Workforce Mobility Act argue that congressional action is needed to permanently safeguard workers’ rights and encourage economic innovation.

    Source: Chris Murphy