H. R. 3920
IN THE HOUSE OF REPRESENTATIVES
July 23, 2019
Mr. Nadler (for himself and Mr. Cicilline) introduced the following bill; which was referred to the Committee on the Judiciary
To prohibit agreements between employers that directly restrict the current or future employment of any employee.
This Act may be cited as the
End Employer Collusion Act.
Unfair methods of competition and agreements in restraint of trade relating to restrictive employment agreements
In this section:
Employ; employer; employee
employee have the meanings given such terms in section 3 of the Fair Labor Standards Act of 1938 (29 U.S.C. 203).
Restrictive employment agreement
restrictive employment agreement means any agreement that—
is between 2 or more employers, including through a franchise agreement or a contractor-subcontractor agreement; and
prohibits, restricts, or in any way limits one employer from employing, soliciting, enticing, or hiring another employer’s employees or former employees.
It shall be unlawful for any entity to—
enter into a restrictive employment agreement; or
enforce or threaten to enforce a restrictive employment agreement.
An entity who engages in the conduct described in subsection (b) not later than the date which is 6 months after the date of enactment of this Act shall be liable for—
entering into a contract in restraint of trade or commerce under section 1 of the Sherman Act (15 U.S.C. 1); and
engaging in an unfair method of competition under section 5(a)(1) of the Federal Trade Commission Act (15 U.S.C. 45(a)(1)).
Restrictive employment agreements
Nothing in this Act may be construed to reduce the amount of damages available to a plaintiff in a case involving a restrictive employment agreement that is between 2 or more employers that are not affiliated with each other through a franchise agreement or contractor-subcontractor agreement.