HARTFORD – On a Tuesday conference call, the White House called on Congress to pass U.S. Senator Chris Murphy (D-Conn.) and U.S. Senator Al Franken (D-Minn.)’s Mobility and Opportunity for Vulnerable Employees (MOVE) Act to prohibit employers from requiring low-wage employees from signing non-compete contracts. Last year, Murphy and Franken introduced the MOVE Act to enable low-wage workers to seek higher-paying jobs without fearing legal action from their current employer. The MOVE Act bans the use of non-compete agreements for employees making less than $15 an hour, $31,200 per year, or the minimum wage in the employee’s municipality, and will require employers to notify all prospective employees if they may be asked to sign a non-compete agreement. The White House’s endorsement today accompanied the announcement of a series of administrative actions to addressing wage collusion, anti-competitive practices and unnecessary non-compete agreements.

“I’m glad President Obama is using his last few months in office to highlight this important issue for workers,” said Murphy. “Non-compete agreements hidden in low-wage worker contracts deliberately trap these workers in low-paying jobs – that’s wrong. The MOVE Act would help low-wage workers advance in their career by opening new doors and providing them the freedom to pursue better opportunities.”

“Trapping low-wage employees into 'non-compete' agreements can prevent workers from finding new, higher-paying jobs, which ultimately hurts families and can slow the growth of the middle class," said Franken. "Our bill would remove unfair employment barriers that put our workers in a bind, and I'm glad to see the White House agrees that it needs to be passed into law."

Research shows that employers force anywhere from 8-15% of low-wage workers to sign non-compete agreements in an effort to dissuade those workers from seeking better, higher-paying jobs within the same industry. This unfair use of non-compete agreements has a chilling effect on the upward economic mobility of low-wage workers and stifles their ability to climb out of poverty. By outlawing the use of non-compete agreements for low-wage workers, the MOVE Act will allow those currently stuck in their low-wage jobs to secure a better life for themselves and their families. Murphy and Franken’s MOVE Act is cosponsored by U.S. Senator Elizabeth Warren (D-Mass.) and U.S. Senator Richard Blumenthal (D-Conn.).

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