Bans Noncompetes for Lower-Paid Workers
Workers’ Right to Compete Act
Would ban employers from enforcing noncompete agreements with workers earning under $100,000 a year in cash pay. The Federal Trade Commission and state attorneys general would enforce it.
Supporters say
Labor groups would likely say workers should be free to change jobs. Lower-paid workers often lack the leverage to negotiate away noncompetes.
Critics say
Some business groups would likely say noncompetes protect trade secrets and investments in training. They may argue the ban removes a tool small companies rely on.
Why it matters
Lower-paid workers could take jobs with competitors or start their own businesses without fear of being sued over an old agreement. Confidentiality agreements protecting trade secrets would still be allowed.
What it does
- Bans noncompete agreements for workers earning less than $100,000 a year in cash pay
- Makes existing noncompetes for covered workers unenforceable, including ones signed before this law
- Raises the $100,000 limit each year for inflation after 2026
- Requires employers to notify covered workers in writing within 30 days that their noncompete is void
- Lets the Federal Trade Commission and state attorneys general enforce the ban
Status
Latest action (2026-10-22): Referred to the House Committee on Energy and Commerce.