Representatives Scott Peters, a Democrat from California and Thomas Kean Jr., a Republican from New Jersey, reintroduced the Workforce Mobility Act on Sept. 1, which would sharply restrict employers’ use of noncompete agreements nationwide.
According to a Sept. 1 news release, the bipartisan bill would prohibit noncompete clauses except in narrow circumstances, such as the sale of a business or the dissolution of a partnership. Enforcement would fall to the FTC and the U.S. Department of Labor, with state attorneys general and private parties also empowered to bring legal action. Employers would be required to notify workers about the restrictions.
Mr. Peters has introduced similar legislation in prior Congresses, including bipartisan versions with former Reps. Mike Gallagher and Anna Eshoo. The House measure has a Senate companion, S. 2031, introduced in 2025 by Sens. Chris Murph, D-Conn., and Todd Young R-Ind,, with Sens. Tim Kaine D-Va. and Kevin Cramer, R-N.D., as co-sponsors.
Supporters argue the bill would boost worker mobility, raise wages and spur innovation. The Economic Innovation Group, which backs the measure, said noncompetes limit where millions of Americans can work.
The reintroduction follows the collapse of the FTC’s 2024 attempt to ban noncompetes nationwide, which a federal judge in Texas struck down, leaving the issue to Congress and individual states. Noncompete restrictions carry particular weight for healthcare employers, where physician and clinician mobility has become a flashpoint in hospital-physician contract negotiations nationwide.
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