II 

114TH CONGRESS 

1ST SESSION S. 1504 

To prohibit employers from requiring low-wage employees to enter into covenants not to compete, to require employers to notify potential employees 

of any requirement to enter into a covenant not to compete, and for 

other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 4, 2015 

Mr. MURPHY (for himself and Mr. FRANKEN) introduced the following bill; 

which was read twice and referred to the Committee on Health, Education, Labor, and Pensions 

A BILL 

To prohibit employers from requiring low-wage employees 

to enter into covenants not to compete, to require employers to notify potential employees of any requirement 

to enter into a covenant not to compete, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Mobility and Oppor5 tunity for Vulnerable Employees Act’’ or the ‘‘MOVE 

6 Act’’. 


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1 SEC. 2. DEFINITIONS. 

2 In this Act: 

3 (1) COMMERCE.—The term ‘‘commerce’’ has 

4 the meaning given such term in section 3 of the Fair 

5 Labor Standards Act of 1938 (29 U.S.C. 203). 

6 (2) COVENANT NOT TO COMPETE.—The term 

7 ‘‘covenant not to compete’’ means an agreement— 

8 (A) between an employee and employer 

9 that restricts such employee from performing— 

10 (i) any work for another employer for 

11 a specified period of time; 

12 (ii) any work in a specified geo13 graphical area; or 

14 (iii) work for another employer that is 

15 similar to such employee’s work for the 

16 employer included as a party to the agree17 ment; and 

18 (B) that is entered into after the date of 

19 enactment of this Act. 

20 (3) EMPLOYEE; EMPLOYER; ENTERPRISE; EN21 TERPRISE ENGAGED IN COMMERCE OR IN THE PRO22 DUCTION OF GOODS FOR COMMERCE; GOODS.—The 

23 terms ‘‘employee’’, ‘‘employer’’, ‘‘enterprise’’, ‘‘enter24 prise engaged in commerce or in the production of 

25 goods for commerce’’, and ‘‘goods’’ have the meanVerDate Sep 11 2014 23:59 Jun 05, 2015 Jkt 049200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1504.IS S1504

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1 ings given such terms in section 3 of the Fair Labor 

2 Standards Act of 1938 (29 U.S.C. 203). 

3 (4) LIVABLE HOURLY RATE.—The term ‘‘livable 

4 hourly rate’’ means— 

5 (A) for the fiscal year of the date of enact6 ment of this Act, the greater of— 

7 (i) $15 per hour; or 

8 (ii) the hourly rate equal to the min9 imum wage required by the applicable 

10 State or local minimum wage law; and 

11 (B) for each succeeding fiscal year, the 

12 greater of— 

13 (i) the adjusted amount described in 

14 section 3(c); or 

15 (ii) the hourly rate equal to the min16 imum wage required by the applicable 

17 State or local minimum wage law. 

18 (5) LOW-WAGE EMPLOYEE.—The term ‘‘low19 wage employee’’— 

20 (A) means an employee who, excluding any 

21 overtime compensation required under section 7 

22 of the Fair Labor Standards Act of 1938 (29 

23 U.S.C. 207) or under an applicable State law, 

24 receives from the applicable employer— 


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1 (i) an hourly compensation that is less 

2 than the livable hourly rate; or 

3 (ii) an annual compensation that is 

4 equal to or less than— 

5 (I) for the fiscal year of the date 

6 of enactment of this Act, $31,200 per 

7 year; and 

8 (II) for each succeeding fiscal 

9 year, the adjusted amount described 

10 in section 3(c); and 

11 (B) does not include any salaried employee 

12 who receives from the applicable employer com13 pensation that, for 2 consecutive months, is 

14 greater than— 

15 (i) for the fiscal year of the date of 

16 enactment of this Act, $5,000; and 

17 (ii) for each succeeding fiscal year, the 

18 adjusted amount described in such section. 

19 (6) SECRETARY.—The term ‘‘Secretary’’ means 

20 the Secretary of Labor. 

21 (7) STATE.—The term ‘‘State’’ has the mean22 ing given such term in section 3 of the Fair Labor 

23 Standards Act of 1938 (29 U.S.C. 203). 


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1 SEC. 3. PROHIBITING COVENANTS NOT TO COMPETE FOR 

2 LOW-WAGE EMPLOYEES. 

3 (a) IN GENERAL.—No employer shall enter into a 

4 covenant not to compete with any low-wage employee of 

5 such employer, who in any workweek is engaged in com6 merce or in the production of goods for commerce (or is 

7 employed in an enterprise engaged in commerce or in the 

8 production of goods for commerce). 

9 (b) NOTICE.—An employer who employs any low10 wage employee, who in any workweek is engaged in com11 merce or in the production of goods for commerce (or is 

12 employed in an enterprise engaged in commerce or in the 

13 production of goods for commerce), shall post notice of 

14 the provisions of this Act in a conspicuous place on the 

15 premises of such employer. 

16 (c) INFLATION ADJUSTMENT.— 

17 (1) IN GENERAL.—For each fiscal year after 

18 the fiscal year of the date of enactment of this Act, 

19 the Secretary shall adjust each amount in effect 

20 under section 2(4)(B)(i), section 2(5)(A)(ii)(II), or 

21 section 2(5)(B)(ii) for inflation by increasing each 

22 such amount, as in effect for the preceding fiscal 

23 year, by the annual percentage increase in the Con24 sumer Price Index for Urban Wage Earners and 

25 Clerical Workers (United States city average, all 

26 items, not seasonally adjusted), or its successor pubVerDate Sep 11 2014 23:59 Jun 05, 2015 Jkt 049200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S1504.IS S1504

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1 lication, as determined by the Bureau of Labor Sta2 tistics. 

3 (2) ROUNDING AMOUNTS.—The amounts ad4 justed under paragraph (1) shall be rounded to the 

5 nearest multiple of $0.05. 

6 SEC. 4. DISCLOSURE REQUIREMENT FOR COVENANTS NOT 

7 TO COMPETE. 

8 In order for an employer to require an employee, who 

9 in any workweek is engaged in commerce or in the produc10 tion of goods for commerce (or is employed in an enter11 prise engaged in commerce or in the production of goods 

12 for commerce) and is not a low-wage employee, to enter 

13 into a covenant not to compete, the employer shall, prior 

14 to the employment of such employee and at the beginning 

15 of the process for hiring such employee, have disclosed to 

16 such employee the requirement for entering into such cov17 enant. 

18 SEC. 5. ENFORCEMENT. 

19 (a) IN GENERAL.—The Secretary shall receive, inves20 tigate, attempt to resolve, and enforce a complaint of a 

21 violation of section 3 or 4 in the same manner that the 

22 Secretary receives, investigates, and attempts to resolve 

23 a complaint of a violation of section 6 or 7 of the Fair 

24 Labor Standards Act of 1938 (29 U.S.C. 206 and 207), 

25 subject to subsection (b). 


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1 (b) CIVIL FINE.— 

2 (1) MAXIMUM FINE.—The Secretary shall im3 pose a civil fine— 

4 (A) with respect to any employer who vio5 lates section 3(a) or 4, an amount not to exceed 

6 $5,000 for each employee who was the subject 

7 of such violation; and 

8 (B) with respect to any employer who vio9 lates section 3(b), an amount not to exceed 

10 $5,000. 

11 (2) CONSIDERATION.—In determining the 

12 amount of any civil fine under this subsection, the 

13 Secretary shall consider the appropriateness of the 

14 fine to the size of the employer subject to such fine 

15 and the gravity of the applicable violation. 

Æ 


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