Workforce Mobility Act of 2026

The Workforce Mobility Act of 2026 generally prohibits employers from entering into or enforcing noncompete agreements with their employees and contractors, rendering such contracts void. The bill includes specific exceptions that allow for noncompetes in the context of selling a business entity or dissolving a partnership, as well as for senior executives involved in a business sale who receive substantial severance compensation. It explicitly preserves an employer's right to protect trade secrets through nondisclosure agreements and requires businesses to post notices about these new worker protections. Enforcement is shared between the Federal Trade Commission and the Department of Labor, which must establish joint standards within one year, while also granting individuals a private right of action to sue for damages and attorney fees. Additionally, the act invalidates any predispute arbitration or class action waiver agreements related to violations of these noncompete rules.