H.R. 10215 — Workforce Mobility Act of 2026

This section states congressional findings that noncompete agreements cover 1 in 5 workers, reduce wages, restrict mobility, and slow innovation, while noting that employers have alternative protections through trade secret laws, intellectual property rights, and nondisclosure agreements.

This section prohibits noncompete agreements with employees or contractors in or affecting commerce and renders such agreements unenforceable. It creates exceptions allowing noncompetes in connection with the sale of a business entity's goodwill or ownership interest, including time-limited agreements of up to one year for senior executives who receive severance compensation at least equal to one year of expected pay, and in connection with partnership dissolutions or disassociations, provided the restricted party refrains from similar business only within the geographic area where the entity previously operated.

This section permits employers to enter into agreements with employees and contractors prohibiting disclosure of trade secrets, including after employment or the contract ends.

This section requires employers and contractors whose activities affect commerce to post and maintain notice of the Act's provisions in a conspicuous location on their premises or where notices to employees and applicants are customarily posted. It also authorizes the Secretary of Labor to conduct public awareness activities about the Act.

This section authorizes the Federal Trade Commission to enforce sections 3 and 5(a) as unfair or deceptive acts or practices under the Federal Trade Commission Act and directs the Secretary of Labor to investigate employer violations and bring actions on behalf of aggrieved individuals within 4 years of the violation. It requires the Commission and Secretary to develop shared enforcement standards within 1 year and issue regulations within 18 months, establish confidential complaint systems, and permits private civil actions for actual damages, costs, and attorney fees. The section also empowers state attorneys general to sue as parens patriae for injunctive relief, damages, or other remedies and invalidates predispute arbitration agreements and class-action waivers for such violations.

This section requires the Federal Trade Commission and the Secretary of Labor to each submit a report to Congress on enforcement actions taken under this Act, due no later than one year after the Secretary issues any regulations under section 6(b)(3).

This section defines terms for purposes of the Act, including business entity, buyer, class action, commerce, employee, employer, noncompete agreement, owner of a business entity, ownership interest, person, predispute arbitration agreement, predispute joint-action waiver, qualified asset or interest, sale, seller, senior executive official, and trade secret.