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Mobility and Opportunity for Vulnerable Employees Act

June 3, 2015 | Firm News

Mobility and Opportunity for Vulnerable Employees (MOVE) Act

On Wednesday (June 3, 2015), the Mobility and Opportunity for Vulnerable Employees (MOVE) Act was introduced in the US Senate to prohibit the use of non-compete agreements for employees earning less than $15 per hour, $31,200 per year, or the minimum wage in the employee’s municipality. The Act would be an amendment to the FLSA with DOL enforcement.

The legislation would also require employers to tell prospective employees that they may be asked to sign such an agreement. The intent of the bill is to let workers currently stuck in low-wage positions seek higher-paying jobs without having to fear that their current employer will take legal action against them.

The senators’ statement specifically cited Jimmy John’s noncompete agreements for their restaurant workers and delivery drivers as an example of the ban the Act is trying to address. Hair salons, summer camps and warehouse workers were also mentioned as low wages jobs where noncompetes are inappropriate.

No indication of the projected success or failure of the legislation, but something to keep an eye on. The courts and other states have long expressed disfavor of noncompetes, and it is now bubbling up to the national level.

 

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