Congress moves to free workers from noncompete chains
H.R. 10215 — Workforce Mobility Act of 2026 · Filed by Scott Peters (D-CA) · 1 cosponsor · Introduced Sep 1, 2026 · Referred to committee
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What it does
This bill prohibits employers from enforcing noncompete agreements that restrict workers from taking jobs elsewhere after leaving their employer. It creates narrow exceptions for business sales (where a buyer can restrict the seller from competing) and partnership dissolutions, but bans the practice for ordinary employees. The bill empowers the FTC and Department of Labor to enforce the ban, allows workers to sue employers directly, and requires employers to post notice of the law.
Why we flagged it
The bill's core mechanism is a straightforward prohibition on noncompete agreements for employees, with narrow carve-outs for business sales and partnerships. It is a labor-market deregulation in workers' favor—removing an employer restraint rather than imposing one.
What the text implies
- Noncompete bans may increase poaching of skilled workers by competitors, potentially accelerating talent concentration at well-capitalized firms and startups.
- Employers may shift to alternative restraint mechanisms (longer-term NDAs, stricter trade-secret claims, equity clawbacks) that are harder to police and may be less transparent to workers.
The full analysis lists 4 implications of this text.
Who stands to gain
workers (wage growth, job mobility); startups and smaller competitors (reduced barriers to hiring talent); labor-intensive industries with high turnover (reduced hiring friction)