Workforce Mobility Act of 2018

To prohibit covenants not to compete and require employers to notify employees of such prohibition, and for other purposes. 1. Short title This Act may be cited as the Workforce Mobility Act of 2018 2. Prohibiting covenants not to compete (a) In general No employer shall enter into, enforce, or threaten to enforce a covenant not to compete with any employee of such employer, who in any workweek is engaged in commerce or in the production of goods for commerce (or is employed in an enterprise engaged in commerce or in the production of goods for commerce). (b) Notice An employer who employs any employee, who in any workweek is engaged in commerce or in the production of goods for commerce (or is employed in an enterprise engaged in commerce or in the production of goods for commerce), shall post notice of the provisions of this Act in a conspicuous place on the premises of such employer. 3. Department of Labor enforcement (a) In general The Secretary shall receive, investigate, attempt to resolve, and enforce a complaint of a violation of section 2 in the same manner that the Secretary receives, investigates, and attempts to resolve a complaint of a violation of section 6 or 7 of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 206 (b) Civil fine The Secretary shall impose a civil fine— (1) with respect to any employer who violates section 2(a), in an amount not to exceed $5,000 for— (A) each employee aggrieved by such violation; and (B) for each week the employer is in violation of such section; and (2) with respect to any employer who violates section 2(b), in an amount not to exceed $5,000 for each week the employer is in violation of such section. 4. Private right of action (a) In general An employee who is aggrieved by a violation of section 2 may bring a civil action in an appropriate district court of the United States. (b) Relief In a civil action under subsection (a), a court may award— (1) any actual damages sustained by the employee as a result of the violation; (2) such amount of punitive damages as the court may allow; and (3) for an employee that is a prevailing party, the costs of the action and reasonable attorney’s fees, as determined by the court. 5. Trade secrets Nothing in this Act shall preclude an employer from entering into an agreement with an employee to not share any information (including after the employee is no longer employed by the employer) regarding the employer or the employment that is a trade secret, as defined in section 1839 of title 18, United States Code. 6. Definitions For purposes of this Act: (1) Commerce The term commerce 29 U.S.C. 203 (2) Covenant not to compete The term covenant not to compete (A) Any work for another employer for a specified period of time. (B) Any work in a specified geographical area. (C) Any work for another employer that is similar to such employee’s work for the employer that is a party to such agreement. (3) Employee; employer The terms employee employer 29 U.S.C. 203 (4) Secretary The term Secretary (5) State The term State

Summary: Workforce Mobility Act of 2018 This bill prohibits employers from entering into, enforcing, or threatening to enforce a covenant not to compete with any employee of such employer. A "covenant not to complete" is an agreement between an employer and employee that restricts such employee from performing, after the employment relationship terminates, any work for another employer for a specified period of time, any work in a specified geographical area, or any work for any other employer that is similar to the work performed for the employer who is a party to such agreement. A prohibition against a covenant not to compete does not preclude an agreement between and employer and employee not to share trade secrets. The bill directs the Department of Labor to enforce this bill and impose a fine upon violators. An aggrieved party may file a civil action for actual and punitive damages, and for reasonable attorney's fees and costs if the action is successful.