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Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
Introduced June 11, 2025 by Christopher Murphy · Last progress June 11, 2025
Bans most noncompete agreements between employers (and persons who hire contractors) and the people who work for them, declares such agreements void, and preserves the right to use trade‑secret and confidentiality protections. The law allows narrow exceptions for post‑sale or partnership restrictions and for senior executives subject to a one‑year limit and qualifying severance.
It requires covered employers to post a clear notice about the law, gives the Federal Trade Commission and the Department of Labor authority to enforce the ban, preserves state attorneys general powers and private suits, forbids predispute arbitration or class/joint‑action waiver provisions for claims under the Act, and directs agency rulemaking and reporting to Congress within set timelines.