Bipartisan bill aims to bar non-compete clauses for workers earning under $100,000
Representatives Anna Paulina Luna and Ro Khanna introduced legislation that would prohibit companies from enforcing non-compete agreements on employees making less than $100,000 annually.
Republican Rep. Anna Paulina Luna and Democrat Rep. Ro Khanna have jointly drafted the Workers’ Right To Compete Act, targeting non-compete agreements for employees earning under $100,000 a year. The measure would void both current and future non-compete clauses within a month of passage, freeing affected workers to seek new jobs. Proponents claim such bans raise wages and encourage economic growth, pointing to KKR & Co.’s internal ban and a Federal Reserve Bank of Minneapolis study linking Oregon’s non-compete prohibition to a 2-3% wage increase for hourly workers.
Khanna highlighted California’s long-standing ban as a driver of Silicon Valley innovation, referencing founders like Dario Amodei. The bill is portrayed as a bipartisan initiative that could bridge political divides and promote competition in the tech sector. Critics have not been quoted, and the Federal Trade Commission’s earlier attempt to ban non-competes was overturned by a court.
Why it matters
The bill could reshape labor contracts, potentially raising wages and fostering innovation for millions of lower-income workers.
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