Workforce Mobility Act of 2026

Key Points

• The bill would make it illegal for employers to require or enforce noncompete agreements with employees or contractors, letting workers immediately switch to a competing job or start their own business after leaving a position.
• Congress notes that noncompetes are widespread, covering roughly one in five workers, and argues they lower wages and limit career mobility across the economy.
• There are narrow exceptions: business sellers can still be restricted from competing near their old company, and senior executives receiving a full year of severance pay can face a noncompete lasting up to one year.
• Employers keep the right to protect trade secrets through nondisclosure agreements, so the bill only targets restrictions on where or for whom someone can work, not confidentiality obligations.
• The Federal Trade Commission and Department of Labor would jointly enforce the ban, and workers harmed by an illegal noncompete could sue directly for damages and attorney's fees.