EIG Media Contact: Amelia Sandhovel | [email protected]
Washington D.C. — The Economic Innovation Group (EIG) applauds Senators Chris Murphy (D-CT), Todd Young (R-IN), Tim Kaine (D-VA), and Kevin Cramer (R-ND), and Representatives Mike Gallagher (R-WI-8), Scott Peters (D-CA-50), and Anna Eshoo (D-CA-16) for reintroducing the Workforce Mobility Act of 2023, which would restrict the use of non-compete agreements nationwide, boosting U.S. economic dynamism and benefiting American workers and employers alike.
“Restricting the use of non-compete agreements is necessary to ensure that hardworking Americans have the freedom to pursue the jobs they want in the professions they have chosen at the wages they deserve,” said John Lettieri, President & CEO of the Economic Innovation Group. “The bipartisan Workforce Mobility Act would restore healthy competition to the labor market and foster a more entrepreneurial and innovative economy to the benefit of all Americans. EIG applauds Senators Murphy and Young and Representatives Gallagher and Peters for their leadership on this urgently needed legislation.”
A growing body of research has highlighted the negative effects of non-compete agreements on wage growth, job mobility, and entrepreneurship, particularly for workers with the least bargaining power. Non-competes and other restrictive covenants are increasingly pervasive across the U.S. labor market—roughly 30 million American workers are currently covered by a non-compete, and 38 percent of workers have been bound by one at some point in their career.
In a sign of growing momentum to restrict the use of non-competes nationwide, the Federal Trade Commission (FTC) recently announced a proposed rule to ban the use of non-compete agreements. The proposed rule closely resembles the Workforce Mobility Act and EIG’s longstanding call for reform.
About the Economic Innovation Group (EIG)
The Economic Innovation Group (EIG) is a bipartisan public policy organization dedicated to forging a more dynamic and inclusive American economy. Headquartered in Washington, DC, EIG produces nationally-recognized research and works with policymakers to develop ideas that empower workers, entrepreneurs, and communities.