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Bill would ban non-compete clauses for low-wage workers

Posted by on Jun. 2, 2015 at 1:56 PM
KK
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Bill would ban non-compete clauses for low-wage workers

Two Democratic senators said Tuesday they will introduce legislation banning non-compete contracts for low-wage workers.

The bill from Sens. Chris Murphy (D-Conn.) and Al Franken (D-Minn.) would ban non-compete clauses for workers making less than $15 an hour or $31,200 annually, or the minimum wage in the employee's municipality. 



The move follows reports the Jimmy John's sandwich shops requires some of its low-wage workers to sign two-year non-compete 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 Department of 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 Sanchez (D-Calif.) and Joe 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.”

 

 

by on Jun. 2, 2015 at 1:56 PM
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Billiejeens
by Ruby Member on Jun. 2, 2015 at 3:21 PM
1 mom liked this
The move follows reports the Jimmy John's sandwich shops requires some of its low-wage workers to sign two-year non-compete agreements prohibiting them from working at retail stores that make at least 10 percent of their sales from sandwiches.
 
"reports" or factual knowledge?
 
To force someone to sign a non-compete the employer must compensate them for giving up the opportunity to find equal employment elsewhere,
 
Maybe the legislation is needed - doubtful in my mind.
 
They are freaky fast though - maybe they are protecting that trade secret.
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