U.S. Rep. Mike Garcia (R-CA) last week sponsored legislation that would ban non-compete agreements for America’s lower to middle-income workers in an effort to increase their opportunities.
“I am proud to work in Congress to support the American worker and make our country a better place to get a good-paying job, start a family, and live a meaningful life,” Rep. Garcia said in a Sept. 1 statement.
The congressman on Aug. 30 introduced the Restoring Workers’ Rights Act of 2022, H.R. 8755, which aims to foster economic competition, level the playing field for workers, and result in higher worker wages, according to a bill summary provided by Rep. Garcia’s office.
“It’s no secret that American workers have been struggling to get a financial foothold for the past two years,” said Rep. Garcia. “This bill will ban non-compete agreements for any worker who is subject to overtime protections. That will promote free market competition and position workers to better improve their wages, protections, and benefits.”
Specifically, H.R. 8755 would amend the Fair Labor Standards Act of 1938 to prevent employers from using non-compete agreements in employment contracts for certain non-exempt employees, according to the text of the bill.
H.R. 8755, which has been endorsed by the R Street Institute, American Compass, and the Economic Innovation Group, has been referred for consideration to the U.S. House Education and Labor Committee.
“The evidence is clear: Non-compete agreements are a major obstacle to worker mobility, wage growth, entrepreneurship, and innovation,” said Economic Innovation Group President and CEO John Lettieri. “They stifle workers and employers alike, blocking workers from pursuing better jobs and limiting the pool of qualified candidates for businesses looking to hire. EIG applauds Representative Garcia for recognizing the need for limitations on how noncompete agreements can be used, and we urge Congress to work on a bipartisan basis to enact urgently needed reform.”