End Employer Collusion Act

To prohibit agreements between employers that directly restrict the current or future employment of any employee. 1. Short title This Act may be cited as the End Employer Collusion Act 2. Unfair methods of competition relating to restrictive employment agreements (a) Definitions In this section: (1) Employ; employer; employee The terms employ employer employee 29 U.S.C. 203 (2) Restrictive employment agreement The term restrictive employment agreement (A) is between two or more employers, including through a franchise agreement or a contractor-subcontractor agreement; and (B) prohibits, restricts, or in any way limits one employer from employing, soliciting, enticing, or hiring another employer’s employees or former employees. (b) Conduct prohibited It shall be unlawful for any entity to— (1) enter into a restrictive employment agreement; or (2) enforce or threaten to enforce a restrictive employment agreement. (c) Removal of restrictive employment agreements in franchise agreements Any employer that has in effect a franchise agreement that includes a restrictive employment agreement that was entered into prior to the date of enactment of this Act shall, not later than the date which is 6 months after the date of enactment of this Act, amend the franchise agreement to remove the restrictive employment agreement. (d) Enforcement (1) Private right of action (A) In general Any person who fails to comply with subsection (b) or (c) shall be liable to any individual in an amount equal to the sum— (i) of any actual damages sustained by the individual as a result of the failure; (ii) such amount of punitive damages as the court may allow; and (iii) in the case of any successful action to enforce any liability under this section, the costs of the action together with reasonable attorney’s fees as determined by the court. (B) Venue Any person may bring a civil action under subparagraph (A) in any appropriate district court of the United States. (2) Federal Trade Commission (A) Powers of commission (i) In general The Commission shall enforce this section in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Federal Trade Commission Act ( 15 U.S.C. 41 (ii) Privileges and immunities Any person who violates subsection (b) or (c) shall be subject to the penalties and entitled to the privileges and immunities provided in the Federal Trade Commission Act ( 15 U.S.C. 41 (e) Restrictive employment agreements Nothing in this Act may be construed to reduce the amount of damages available to a plaintiff in a case involving a restrictive employment agreement that is between 2 or more employers that are not affiliated with each other through a franchise agreement or contractor-subcontractor agreement.

Summary: End Employer Collusion Act This bill makes it unlawful for any entity to enter into a restrictive employment agreement, or to enforce or threaten to enforce a restrictive employment agreement. A "restrictive employment agreement" is any agreement between two or more employers that prohibits or restricts one employer from soliciting or hiring another employer's employees or former employees. Any employer that has in effect a franchise agreement that includes a restrictive employment agreement that was entered into before enactment of this bill must amend the franchise agreement to remove such agreement. The bill allows aggrieved individuals to bring a civil action for actual and punitive damages, plus attorney's fees, against an entity that enters into, or threatens to enforce, or fails to remove, a restrictive employment agreement. The bill grants the Federal Trade Commission the power to enforce the requirements of this bill.