Bill would ban noncompete clauses for low-wage workers

Bill would ban noncompete clauses for low-wage workers
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Two Democratic senators said Tuesday they will introduce legislation banning noncompete contracts for low-wage workers.

The bill from Sens. Chris MurphyChristopher (Chris) Scott MurphyThe Hill's Morning Report - Presented by Better Medicare Alliance - Trump has had a rough October Pelosi, Schumer hit 'flailing' Trump over 'sham ceasefire' deal Romney slams ceasefire deal, calls Trump's Syria move 'a bloodstain' in US history MORE (D-Conn.) and Al FrankenAlan (Al) Stuart FrankenTake Trump literally and seriously in Minnesota Ninth woman accuses Al Franken of inappropriate contact Al Franken to host SiriusXM radio show MORE (D-Minn.) would ban noncompete clauses for workers making less than $15 an hour or $31,200 annually, or the minimum wage in the employee's municipality. 

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The move follows reports the Jimmy John's sandwich shops requires some of its low-wage workers to sign two-year noncompete agreements prohibiting them from working at retail stores that make at least 10 percent of their sales from sandwiches.

The legislation is dubbed the “Mobility and Opportunity for Vulnerable Employees (MOVE) Act” and is also supported by the National Employment Law Project.

In October 2014, 35 House Democrats sent a letter to Federal Trade Commission Chairwoman Edith Ramirez and Labor Secretary Thomas Perez urging them to investigate the issue.

“Non-competition agreements may sometimes make sense for well-compensated core company leadership, who are privy to company secrets and strategies,” lawmakers wrote in the letter, which was circulated by Reps. Linda Sánchez (D-Calif.) and Joseph Crowley (D-N.Y.). “However, applying them to a company’s entire workforce looks more like bullying under color of law, as well as a violation of labor rights.”