Workforce Mobility Act of 2026

The Workforce Mobility Act of 2026 seeks to broadly prohibit the use of noncompete agreements, which Congress finds detrimental to worker mobility, wage growth, and innovation. The bill generally makes it unlawful for any person to enter into, enforce, or attempt to enforce a noncompete agreement with an individual performing work for them. Such agreements, entered into after the Act's enactment, would have no legal force or effect, aiming to free workers from restrictions on their future employment options. However, the bill provides specific, narrow exceptions to this general prohibition. Noncompete agreements may be permitted in connection with the sale of a business entity's goodwill or ownership interest , allowing sellers to agree not to compete in a specified geographic area. A limited exception also applies to senior executive officials who are part of a business sale and receive substantial severance compensation, restricting them for no more than one year. Additionally, partners in a business may agree to noncompete clauses upon partnership dissolution or disassociation within a specified geographic area. Importantly, the Act clarifies that it does not prevent employers from entering into agreements to protect trade secrets , ensuring legitimate business interests are still safeguarded. Employers are required to post notice of the Act's provisions in a conspicuous place, and the Secretary of Labor may conduct a public awareness campaign. Enforcement of the Act falls under the purview of both the Federal Trade Commission (FTC) , treating violations as unfair or deceptive practices, and the Department of Labor (DOL) , which will investigate and bring actions against employers. To ensure comprehensive enforcement, the FTC and DOL are mandated to develop shared standards and define their respective scopes of responsibility. The bill also establishes a private right of action , allowing aggrieved individuals to sue for actual damages, costs, and attorney's fees. Furthermore, State attorneys general are empowered to bring civil actions on behalf of their residents to enjoin violations or seek damages. Significantly, the Act invalidates any predispute arbitration agreements or joint-action waivers regarding alleged violations, preserving individuals' rights to pursue claims in court or through class actions.