To prohibit employers from requiring low-wage employees to enter into covenants not to compete, to require employers to notify potential employees of any requirement to enter into a covenant not to compete, and for other purposes.
Limiting the Ability to Demand Detrimental Employment Restrictions Act or the LADDER Act
This bill: (1) prohibits employers from entering into not to compete covenants with low-wage employees engaged in commerce or in the production of goods for commerce, and (2) requires an employer of such employees to post notice of such prohibition in a conspicuous place on the employer's premises.
The bill defines "low-wage employee" as an employee who earns less than the greater of $15 per hour or the state or local minimum wage.
In order for an employer to require such an employee who is not a low-wage employee to enter into such a covenant, the employer must have disclosed the requirement for entering into such covenant before hiring such employee.
The Secretary of Labor shall: (1) enforce a complaint of a violation of this Act in the same manner as a complaint of a violation of the Fair Labor Standards Act of 1938, and (2) impose a civil fine on any employer who violates this Act.
Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
Referred to the Subcommittee on Workforce Protections.
Introduced in House
Introduced in House
Referred to the House Committee on Education and the Workforce.
Referred to the Subcommittee on Workforce Protections.
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