Congressional Democrats Propose Legislation that Would Ban Noncompete Agreements

Democratic senators helped reign in the new month with proposed legislation that would prohibit employers from using noncompete agreements.

Noncompete agreements prohibit employees from entering a new profession that is in direct competition with the current employer. One of the benefits of noncompete agreements for employers is that they are better able to control trade secrets and prevent former employees from sharing those secrets with competitors.

However, Senator Warren of Massachusetts and Senator Murphy of Connecticut have proposed prohibiting noncompete agreements, stating that the current system is harmful to American workers and substantially limits opportunities for professional growth. Moreover, the senators have argued that noncompete agreements force employees to accept low wages rather than look for higher paying job opportunities.

The bill, S.2782, is currently being reviewed by the Senate HELP Committee. It’s unclear whether the bill in its current form will gain the traction necessary for passage, as Republicans control both houses of Congress.

Source: http://www.wkcheetah.com/?cpid=WKUS-Legal-Cheetah#/read/AllContent/63fef7727d0110009f7890b11c18c90202!csh-da-filter!WKUS-TAL-DOCS-PHC-%7B4C9426F4-FBF2-11E5-88CB-74E5434FFA59%7D–WKUS_TAL_5134%23teid-1?searchItemId=&da=WKUS_TAL_5134