U.S. Sen. Marco Rubio (R-FL) introduced legislation designed to protect low-wage or entry-level workers from non-compete agreements that limit their employment opportunities.
The Freedom to Compete Act would amend the Fair Labor Standards Act of 1938 (FLSA) to prevent employers from using non-compete agreements in employment contracts for certain non-exempt employees.
The Freedom to Compete Act would apply only to employees who do not qualify for the FLSA’s minimum wage and overtime exemption for executive, administrative, professional and outside sales employees. Further, it would prohibit an employer from enforcing, or threatening to enforce, a non-compete agreement with a non-exempt employee. Additionally, Rubio’s bill would prevent an employer from entering into, extending, or renewing a non-compete agreement with a non-exempt employee. The U.S. Department of Labor would enforce this legislation under the existing FLSA framework for minimum wage and overtime violations.
“Non-compete agreements that arbitrarily restrict entry-level, low-wage workers from pursuing better employment opportunities are egregious and outdated in the twenty-first century American economy,” Rubio said. “My bill would empower these workers by preventing employers from using non-compete agreements in employment contracts. I hope my colleagues will join me in passing this bill so we can enhance the upward mobility of our low-wage American workers.”