U.S. Senators Todd Young and Chris Murphy have reported increased backing for the Workforce Mobility Act, a bipartisan bill aimed at restricting the use of non-compete clauses in employment contracts. The senators argue that these agreements negatively affect nearly 20% of American workers by limiting their ability to change jobs.
The legislation seeks to address concerns that non-compete clauses prevent employees from pursuing better opportunities and restrict competition in the labor market. Supporters of the bill believe it will help restore balance between employers and workers.
Oren Cass, Chief Economist at American Compass, commented on the issue: “Corporate abuse of non-compete agreements is a classic example of the reality, understood by economists since Adam Smith, that workers operate at an inherent disadvantage dealing with employers and need help to advance and protect their interests. Blind faith in markets has led inadvertently to a situation where millions of American workers cannot switch to better jobs, which is the opposite of what a well-functioning market would produce. Senators Young and Murphy deserve great credit for doing exactly what capitalism requires: setting rules within which competition will lead to prosperity for American families,” said Cass.
