I 

115TH CONGRESS 

2D SESSION H. R. 5631 

To prohibit employers from requiring employees to enter into covenants not 

to compete, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 26, 2018 

Mr. CROWLEY (for himself, Ms. SA ́NCHEZ, Mr. POCAN, Mr. ELLISON, Mr. 

NADLER, and Mr. CICILLINE) introduced the following bill; which was referred to the Committee on the Judiciary, and in addition to the Committee on Education and the Workforce, for a period to be subsequently 

determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To prohibit employers from requiring employees to enter 

into covenants 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 ‘‘Workforce Mobility 

5 Act of 2018’’. 

6 SEC. 2. PROHIBITING COVENANTS NOT TO COMPETE. 

7 No employer shall enter into a covenant not to com8 pete with any employee of such employer, who in any 


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1 workweek is engaged in commerce or in the production 

2 of goods for commerce (or is employed in an enterprise 

3 engaged in commerce or in the production of goods for 

4 commerce). 

5 SEC. 3. PRESUMPTION OF ILLEGALITY OF COVENANTS NOT 

6 TO COMPETE IN EMPLOYMENT CONTRACTS. 

7 A covenant not to compete contained in an employ8 ment contract made between an employer and an employee 

9 is anticompetitive and violates the antitrust laws unless 

10 the employer establishes by a preponderance of the evi11 dence that the covenant does not have an anticompetitive 

12 effect or that the pro-competitive effects outweigh the 

13 anticompetitive harm. 

14 SEC. 4. PRIVATE RIGHT OF ACTION. 

15 (a) IN GENERAL.—Any person who fails to comply 

16 with section 2 shall be liable to any individual in an 

17 amount equal to the sum of— 

18 (1) any actual damages sustained by the indi19 vidual as a result of the failure; 

20 (2) such amount of punitive damages as the 

21 court may allow; and 

22 (3) in the case of any successful action to en23 force any liability under this subsection, the costs of 

24 the action together with reasonable attorney’s fees 

25 as determined by the court. 


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1 (b) VENUE.—Any person may bring a civil action 

2 under subsection (a) in any appropriate district court of 

3 the United States. 

4 SEC. 5. TRADE SECRETS. 

5 Nothing in this Act shall preclude an employer from 

6 entering into an agreement with an employee to not share 

7 any information (including after the employee is no longer 

8 employed by the employer) regarding the employer or the 

9 employment that is a trade secret as defined in section 

10 1839 of title 18 of the United States Code. 

11 SEC. 6. DEFINITIONS. 

12 For purposes of this Act: 

13 (1) ANTITRUST LAWS.—The term ‘‘antitrust 

14 laws’’ shall have the meaning given such term in 

15 subsection (a) of the first section of the Clayton Act 

16 (15 U.S.C. 12), except that such term shall include 

17 section 5 of the Federal Trade Commission Act (15 

18 U.S.C. 45) to the extent that such subsection applies 

19 to unfair methods of competition. 

20 (2) COMMERCE.—The term ‘‘commerce’’ has 

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

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

23 (3) COVENANT NOT TO COMPETE.—The term 

24 ‘‘covenant not to compete’’ means an agreement beVerDate Sep 11 2014 04:21 May 03, 2018 Jkt 079200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5631.IH H5631

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1 tween an employer and an employee that restricts 

2 such employee from performing— 

3 (A) any work for another employer for a 

4 specified period of time; 

5 (B) any work in a specified geographical 

6 area; or 

7 (C) any work for another employer that is 

8 similar to such employee’s work for the em9 ployer that is a party to such agreement. 

10 (4) EMPLOYEE.—The term ‘‘employee’’ has the 

11 meaning given such term in section 3 of the Fair 

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

13 (5) EMPLOYER.—The term ‘‘employer’’ has the 

14 meaning given such term in section 3 of the Fair 

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

16 (6) STATE.—The term State means any of the 

17 several States or the District of Columbia. 

Æ 


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