Washington, D.C. — The Economic Innovation Group (EIG) commends Representatives Scott Peters (D-CA-52), Mike Gallagher (R-WI-8), and Anna Eshoo (D-CA-18) for introducing bipartisan legislation to reform the use of non-compete agreements. EIG’s 2019 report on non-compete agreements explores their proliferation across the U.S. labor market and evaluates their effects on workers and the economy.
“There is growing consensus that the pervasive use of non-compete agreements—which now cover tens of millions of American workers—is harmful to workers, employers, and the economy as a whole,” said John Lettieri, President and CEO of EIG. “Sensible non-compete reform would boost wages, strengthen innovation, and improve the dynamism of the U.S. economy. EIG applauds Representatives Peters, Gallagher, and Eshoo for their bipartisan leadership.”
“American workers should be free to compete in an open market—for increased pay, better conditions, or to start their own company—but for at least 30 million workers, non-compete agreements get in the way,” said EIG Vice President Chris Slevin. “This bipartisan legislation adds to the momentum building around the country to limit non-compete agreements and support worker freedom.”
The House bill introduced yesterday serves as companion legislation to the Workforce Mobility Act, the first bipartisan federal effort to reform non-competes, introduced last fall by Senators Todd Young (R-IN) and Chris Murphy (D-CT). The Workforce Mobility Act and the new House bill address the abuse of non-compete agreements by limiting their legal use, requiring employers to notify employees of the limits of their application, and delegating appropriate enforcement and reporting responsibilities to the Federal Trade Commission and the U.S. Department of Labor. The legislation is supported by leading stakeholders from across the ideological spectrum.
About the Economic Innovation Group (EIG)
The Economic Innovation Group (EIG) is a bipartisan ideas laboratory and advocacy organization whose mission is to advance solutions that empower entrepreneurs and investors to forge a more dynamic American economy. Headquartered in Washington, D.C., EIG convenes leading experts from the public and private sectors, produces original research, and works to advance creative legislative proposals that will bring new jobs, investment, and economic growth to communities across the nation. For more information, visit eig.org.