skip to main content

H.R. 3920: End Employer Collusion Act

The text of the bill below is as of Jul 23, 2019 (Introduced).


I

116th CONGRESS

1st Session

H. R. 3920

IN THE HOUSE OF REPRESENTATIVES

July 23, 2019

(for himself and Mr. Cicilline) introduced the following bill; which was referred to the Committee on the Judiciary

A BILL

To prohibit agreements between employers that directly restrict the current or future employment of any employee.

1.

Short title

This Act may be cited as the End Employer Collusion Act.

2.

Unfair methods of competition and agreements in restraint of trade relating to restrictive employment agreements

(a)

Definitions

In this section:

(1)

Employ; employer; employee

The terms employ, employer, and employee have the meanings given such terms in section 3 of the Fair Labor Standards Act of 1938 (29 U.S.C. 203).

(2)

Restrictive employment agreement

The term restrictive employment agreement means any agreement that—

(A)

is between 2 or more employers, including through a franchise agreement or a contractor-subcontractor agreement; and

(B)

prohibits, restricts, or in any way limits one employer from employing, soliciting, enticing, or hiring another employer’s employees or former employees.

(b)

Conduct prohibited

It shall be unlawful for any entity to—

(1)

enter into a restrictive employment agreement; or

(2)

enforce or threaten to enforce a restrictive employment agreement.

(c)

Violation

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—

(1)

entering into a contract in restraint of trade or commerce under section 1 of the Sherman Act (15 U.S.C. 1); and

(2)

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)).

(d)

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.