Title: Workforce Mobility Act of 2018
Policy area: Labor and Employment

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.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 2782 Introduced in Senate (IS)]

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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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Workforce Mobility Act of 2018''.

SEC. 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.

SEC. 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 and 207), subject to subsection 
(b).
    (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.

SEC. 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.

SEC. 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.

SEC. 6. DEFINITIONS.

    For purposes of this Act:
            (1) Commerce.--The term ``commerce'' has the meaning given 
        such term in section 3 of the Fair Labor Standards Act of 1938 
        (29 U.S.C. 203).
            (2) Covenant not to compete.--The term ``covenant not to 
        compete'' means an agreement, entered into after the date of 
        enactment of this Act between an employer and an employee, that 
        restricts such employee from performing, after the employment 
        relationship between the employer and the employee terminates, 
        any of the following:
                    (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'' and 
        ``employer'' have the meanings given such terms in section 3 of 
        the Fair Labor Standards Act of 1938 (29 U.S.C. 203).
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Labor.
            (5) State.--The term ``State'' means any of the several 
        States or the District of Columbia.
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