Bills of Congress June 11, 2025 by U.S. Congress

S.2031 - Workforce Mobility Act of 2025 (119th Congress)

Summary

The Workforce Mobility Act of 2025 aims to prohibit noncompete agreements, fostering wage growth and worker mobility. It addresses concerns that these agreements restrict employment options and slow innovation. The bill includes exceptions for the sale of a business and partnership dissolutions under specific conditions.

Expected Effects

If enacted, the bill would invalidate most noncompete agreements, allowing workers greater freedom to change jobs. This could lead to increased competition among employers for talent. The FTC and Department of Labor would enforce the act, and individuals would have a private right of action.

Potential Benefits 4/5

* Increased worker mobility and wage growth.
* Greater competition among employers, potentially leading to better benefits and working conditions.
* Stimulation of innovation as workers are free to move between companies and share knowledge.
* Reduced unemployment periods for workers previously bound by noncompete agreements.
* Empowerment of workers to maximize their labor market potential.

Most Benefited Areas:

Individual Liberties, Rights & Privacy ★ ★ ★ ★ ★

Labor Rights & Worker Conditions ★ ★ ★ ★ ★

Economic Growth & Job Creation ★ ★ ★ ★ ★

Potential Disadvantages

* Potential loss of trade secrets and proprietary information for businesses.
* Increased competition could pressure some businesses, particularly smaller ones, to raise wages or offer better benefits, impacting profitability.
* Possible legal challenges to the scope and interpretation of the exceptions.
* Businesses may invest less in employee training if they fear employees will leave for competitors.
* Some employers may seek alternative methods to protect their interests, such as stricter NDAs, which could still limit worker mobility.

Constitutional Alignment 4/5

The bill's focus on regulating contracts and commerce aligns with Congress's power under Article I, Section 8, Clause 3 (the Commerce Clause), which allows Congress to regulate interstate commerce. The prohibition of noncompete agreements could be argued to promote a more efficient national labor market, thus falling under the scope of the Commerce Clause. The Tenth Amendment reserves powers not delegated to the federal government to the states, but the regulation of contracts affecting interstate commerce has been historically considered within federal purview.