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The summary below was written by the Congressional Research Service, which is a nonpartisan division of the Library of Congress, and was published on Feb 25, 2021.
Workforce Mobility Act of 2021
This bill prohibits the use of noncompete agreements in the context of commercial enterprises except under certain circumstances.
The first exception is that the seller of the entirety of a business interest may enter an agreement to refrain from engaging in a similar business in the geographic areas where the business being sold has conducted business prior to the agreement. This exception extends to agreements by senior executive officials who have a severance agreement as part of the conditions of sale (i.e., a buyout provision). Second, a partner of an enterprise, in anticipation of the dissolution of the partnership or disassociation of a partner, may enter an agreement to refrain from engaging in a similar business in the geographic areas where the partnership has conducted business prior to the agreement.
Commercial enterprises must post notice of this prohibition in the workplace.
The Federal Trade Commission or the Department of Labor shall investigate or enforce the provisions of this bill.