July 16, 2021

Senators Hassan, Rubio Introduce Bill to Protect Low-Wage Workers from Non-Compete Agreements

WASHINGTON – U.S. Senators Maggie Hassan (D-NH) and Marco Rubio (R-FL) reintroduced legislation to protect entry-level, low-wage workers from non-compete agreements that limit their employment opportunities and restrict their ability to negotiate higher wages and benefits. Specifically, the Freedom to Compete Act would amend the Fair Labor Standards Act of 1938 (FLSA) to prevent employers from using non-compete agreements in employment contracts for certain non-exempt employees.

  

“It makes zero sense that entry-level, low wage workers are often limited by non-compete agreements from finding better employment opportunities and negotiating higher wages,” Senator Hassan said. “That is why I have joined with Senator Rubio to reintroduce legislation to protect many low-wage workers from these restrictive agreements. I will continue to advocate for workers’ rights and benefits so that Granite Staters have access to better economic opportunities.”

 

The Freedom to Compete Act would:

 

  • Apply only to employees who do not qualify for the FLSA’s minimum wage and overtime exemption for bona fide executive, administrative, professional, and outside sales employees;
  • Prohibit an employer from enforcing, or threatening to enforce, a non-compete agreement with a non-exempt employee;
  • Prohibit an employer from entering into, extending, or renewing a non-compete agreement with a non-exempt employee; and
  • Be enforced by the Department of Labor under the existing FLSA framework for minimum wage and overtime violations.

 

To see bill text, click here. To see a one-pager on the bill, click here.

 

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