End Employer Collusion Act

End Employer Collusion Act

This bill makes it unlawful for any entity to enter into a restrictive employment agreement, or to enforce or threaten to enforce a restrictive employment agreement. A "restrictive employment agreement" is any agreement between two or more employers that prohibits or restricts one employer from soliciting or hiring another employer's employees or former employees.

Any employer that has in effect a franchise agreement that includes a restrictive employment agreement that was entered into before enactment of this bill must amend the franchise agreement to remove such agreement.

The bill allows aggrieved individuals to bring a civil action for actual and punitive damages, plus attorney's fees, against an entity that enters into, or threatens to enforce, or fails to remove, a restrictive employment agreement.

The bill grants the Federal Trade Commission the power to enforce the requirements of this bill.