II 

115TH CONGRESS 

2D SESSION S. 2782 

To prohibit covenants not to compete and require employers to notify 

employees of such prohibition, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

APRIL 26, 2018 

Mr. MURPHY (for himself, Ms. WARREN, and Mr. WYDEN) introduced the following bill; which was read twice and referred to the Committee on 

Health, Education, Labor, and Pensions 

A BILL 

To prohibit covenants not to compete and require employers 

to notify employees of such prohibition, 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 (a) IN GENERAL.—No employer shall enter into, en8 force, or threaten to enforce a covenant not to compete 

9 with any employee of such employer, who in any workweek 


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1 is engaged in commerce or in the production of goods for 

2 commerce (or is employed in an enterprise engaged in 

3 commerce or in the production of goods for commerce). 

4 (b) NOTICE.—An employer who employs any em5 ployee, who in any workweek is engaged in commerce or 

6 in the production of goods for commerce (or is employed 

7 in an enterprise engaged in commerce or in the production 

8 of goods for commerce), shall post notice of the provisions 

9 of this Act in a conspicuous place on the premises of such 

10 employer. 

11 SEC. 3. DEPARTMENT OF LABOR ENFORCEMENT. 

12 (a) IN GENERAL.—The Secretary shall receive, inves13 tigate, attempt to resolve, and enforce a complaint of a 

14 violation of section 2 in the same manner that the Sec15 retary receives, investigates, and attempts to resolve a 

16 complaint of a violation of section 6 or 7 of the Fair Labor 

17 Standards Act of 1938 (29 U.S.C. 206 and 207), subject 

18 to subsection (b). 

19 (b) CIVIL FINE.—The Secretary shall impose a civil 

20 fine— 

21 (1) with respect to any employer who violates 

22 section 2(a), in an amount not to exceed $5,000 

23 for— 

24 (A) each employee aggrieved by such viola25 tion; and 


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1 (B) for each week the employer is in viola2 tion of such section; and 

3 (2) with respect to any employer who violates 

4 section 2(b), in an amount not to exceed $5,000 for 

5 each week the employer is in violation of such sec6 tion. 

7 SEC. 4. PRIVATE RIGHT OF ACTION. 

8 (a) IN GENERAL.—An employee who is aggrieved by 

9 a violation of section 2 may bring a civil action in an ap10 propriate district court of the United States. 

11 (b) RELIEF.—In a civil action under subsection (a), 

12 a court may award— 

13 (1) any actual damages sustained by the em14 ployee as a result of the violation; 

15 (2) such amount of punitive damages as the 

16 court may allow; and 

17 (3) for an employee that is a prevailing party, 

18 the costs of the action and reasonable attorney’s 

19 fees, as determined by the court. 

20 SEC. 5. TRADE SECRETS. 

21 Nothing in this Act shall preclude an employer from 

22 entering into an agreement with an employee to not share 

23 any information (including after the employee is no longer 

24 employed by the employer) regarding the employer or the 


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1 employment that is a trade secret, as defined in section 

2 1839 of title 18, United States Code. 

3 SEC. 6. DEFINITIONS. 

4 For purposes of this Act: 

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

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

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

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

9 ‘‘covenant not to compete’’ means an agreement, en10 tered into after the date of enactment of this Act be11 tween an employer and an employee, that restricts 

12 such employee from performing, after the employ13 ment relationship between the employer and the em14 ployee terminates, any of the following: 

15 (A) Any work for another employer for a 

16 specified period of time. 

17 (B) Any work in a specified geographical 

18 area. 

19 (C) Any work for another employer that is 

20 similar to such employee’s work for the em21 ployer that is a party to such agreement. 

22 (3) EMPLOYEE; EMPLOYER.—The terms ‘‘em23 ployee’’ and ‘‘employer’’ have the meanings given 

24 such terms in section 3 of the Fair Labor Standards 

25 Act of 1938 (29 U.S.C. 203). 


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1 (4) SECRETARY.—The term ‘‘Secretary’’ means 

2 the Secretary of Labor. 

3 (5) STATE.—The term ‘‘State’’ means any of 

4 the several States or the District of Columbia. 

Æ 


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