EIG American Dynamism Series | The Case for Non-compete Reform
On April 29th, the Economic Innovation Group (EIG) hosted a webinar to discuss the Workforce Mobility Act [1], recently reintroduced bipartisan legislation from U.S. Senators Chris Murphy (D-CT) and Todd Young (R-IN), that would limit the use of non-compete agreements that curtail worker mobility, stem wage growth, and stifle entrepreneurship and innovation.
Today, around 20 percent of American workers are covered by a non-compete agreement. Non-compete agreements have negative effects on all workers but are especially damaging for historically marginalized workers. When enforced, non-competes lower wages for female and nonwhite workers by twice as much as for white male workers.