Referred to the Committee on Energy and Commerce, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Congressional Research Service
Official summary
No official summary is available in the imported record yet.
Referred to the Committee on Energy and Commerce, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Energy and Commerce, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Introduced in House
Introduced in House
Primary sources
Bill text & related measures
Text links open the official source. We also preserved the text version used in the PlainBill explanation below.
Source last updated: Sep 9, 2026. Consult Congress.gov for the current record.
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Analyze H.R.10215 as objectively as possible. Explain its main provisions, who would be affected, possible benefits and harms, implementation, exceptions, and uncertainties. Present the strongest arguments for and against it, and identify evidence needed to assess its public impact.
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PlainBill explanation
Read the proposal in plain language
AI-generated · Source-checked by AI · Oct 22, 2026
Based on the full Introduced in House · 2026-09-01 text. This explanation has not received human editorial review. This overview describes the proposal’s major provisions; it does not establish what its real-world effects would be.
What it would do
This proposal would generally prohibit employers and people hiring contractors from making or enforcing new agreements that restrict where someone can work after leaving a job. It would cover agreements entered into after enactment, with limited exceptions involving business sales and departing partners. Workers could sue over violations, and federal agencies and state attorneys general would have enforcement roles. The supplied record shows an introduced bill; it does not establish enactment.
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Except as provided in subsection (b), no person shall enter into, enforce, or attempt to enforce a noncompete agreement with any individual who is employed by, or performs work under contract with, such person with respect to the activities of such person in or affecting commerce.
The term noncompete agreement means an agreement, entered into after the date of enactment of this Act between a person and an individual performing work for the person, that restricts such individual, after the working relationship between the person and individual terminates
Source snapshot updated 2026-09-09T13:20:06Z.
2026-09-01: Referred to the Committee on Energy and Commerce, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
The proposed congressional findings describe noncompete agreements as restricting employment options and identify trade secret protections, intellectual property protections, and nondisclosure agreements as alternatives. These statements express the bill's rationale; they do not establish the proposal's future effects.
(4) Employers have access to legal recourses to protect their legitimate interests and property, including trade secret protections, intellectual property protections, and nondisclosure agreements that do not inflict broad collateral harm on the labor market prospects for workers.
(6) Noncompete agreements broadly restrict employment options for workers in the United States when more narrowly targeted remedies are readily available to employers.
Subject to the stated exceptions, the bill would prohibit entering into, enforcing, or attempting to enforce covered noncompete agreements with employees or individual contractors for activities in or affecting commerce. Those agreements would have no legal force or effect.
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(1) In general Except as provided in subsection (b), no person shall enter into, enforce, or attempt to enforce a noncompete agreement with any individual who is employed by, or performs work under contract with, such person with respect to the activities of such person in or affecting commerce. (2) Effect of agreements Except as provided in subsection (b), a noncompete agreement described in paragraph (1) shall have no force or effect.
The bill's definition would cover only agreements entered into after enactment. It would reach restrictions that apply after the working relationship ends and limit work for someone else for a specified time, work in a specified area, or similar work for another person. It would not bring earlier agreements within that definition.
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(6) Noncompete agreement The term noncompete agreement means an agreement, entered into after the date of enactment of this Act between a person and an individual performing work for the person, that restricts such individual, after the working relationship between the person and individual terminates, from performing— (A) any work for another person for a specified period of time; (B) any work in a specified geographical area; or (C) any work for another person that is similar to such individual's work for the person that is a party to such agreement.
A business seller could agree with the buyer not to operate a similar business in a specified area where the business, a division, or a subsidiary previously operated. This exception would require the buyer, or someone acquiring the business's goodwill or an ownership interest through the buyer, to operate a similar business there.
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(A) In general A seller of a business entity may enter into an agreement with the buyer to refrain from carrying on a like business within a specified geographic area described in subparagraph (C), if the buyer, or any person deriving title to the goodwill of the business entity or an ownership interest in the business entity from the buyer, carries on a like business in such specified geographic area.
(C) Specified geographic area A specified geographic area described in this subparagraph is a geographic area— (i) that is specified in an agreement described in subparagraph (A), or a noncompete agreement described in subparagraph (B), regarding a business entity; and (ii) in which such business entity, including any division or subsidiary of such business entity, conducted business prior to the agreement or noncompete agreement.
In a business sale, a buyer or seller could restrict a qualifying senior executive from doing similar work for up to one year, subject to the severance requirement. The restriction would have to concern an area where the business, a division, or a subsidiary previously operated, and the buyer or a qualifying successor would have to operate a similar business there.
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(i) In general Subject to clause (ii), a buyer or seller of a business entity may enter into a noncompete agreement with a senior executive official who has a severance agreement described in clause (iii) that restricts the senior executive official from performing, within a specified geographic area described in subparagraph (C), any work that is similar to the work that the senior executive official performed for the buyer or seller, if the buyer, or any person deriving title to the goodwill of the business entity or an ownership interest in the business entity from the buyer, carries on a like business in such specified geographic area. (ii) Time-limited agreement A noncompete agreement described in clause (i) may not restrict the senior executive official as described in such clause for a period that is more than one year.
(C) Specified geographic area A specified geographic area described in this subparagraph is a geographic area— (i) that is specified in an agreement described in subparagraph (A), or a noncompete agreement described in subparagraph (B), regarding a business entity; and (ii) in which such business entity, including any division or subsidiary of such business entity, conducted business prior to the agreement or noncompete agreement.
The executive's severance agreement would have to be part of the sale terms. It would have to promise payment upon employment termination of at least the compensation the executive receives or would reasonably be expected to receive from the buyer during the year following the sale.
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(iii) Severance agreement A severance agreement described in this clause is an agreement between the buyer or seller of a business entity and a senior executive official that— (I) is part of the terms and conditions of the sale; and (II) requires monetary compensation for the senior executive official in the event of termination of the employment of the senior executive official at an amount that is not less than the compensation that the senior executive official is or would be reasonably expected to receive from the buyer during the 1-year period following the sale.
The executive exception would apply only to an official who becomes the buyer's employee through the sale. On the day before the sale, that official must have worked for the seller, made or directed major decisions, and ranked in the highest 10 percent of the seller's employee compensation rates.
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(15) Senior executive official The term senior executive official, with respect to a sale, means an official who was acquired as an employee of the buyer in such sale through the terms and conditions of the sale, and, on the day before the date of such sale— (A) who was employed by the seller in such sale; (B) who was responsible for making or directing major decisions of the seller; and (C) whose rate of compensation was in the highest 10 percent of the compensation rates for all employees of the seller.
A partner could agree not to operate a similar business after the partnership dissolves or the partner leaves. The agreement would have to specify an area where the partnership previously did business, and another partner or a qualifying successor would have to operate a similar business there.
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(2) Partnership dissolution or disassociation (A) In general Any partner of a partnership may enter into an agreement with any other member of the partnership that, upon the dissolution of the partnership or dissociation of the partner from such partnership, the partner will refrain from carrying on a like business within a specified geographic area described in subparagraph (B), if any other member of the partnership, or any person deriving title to the partnership or the goodwill of the partnership from any other member of the partnership, carries on a like business in such specified geographic area. (B) Specified geographic area A specified geographic area described in this subparagraph is a geographic area— (i) that is specified in an agreement described in subparagraph (A); and (ii) in which any business of the partnership has been transacted prior to the agreement.
For the sale exceptions, covered businesses would include partnerships, limited liability companies, and corporations. A sale could involve goodwill, all of a seller's ownership interest, or specified asset transactions. Those asset transactions include all or substantially all operating assets plus goodwill of a business, division, or subsidiary, or all ownership interests in a subsidiary.
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(1) Business entity The term business entity means any partnership (including a limited partnership or a limited liability partnership), limited liability company (including a series of a limited liability company formed under the laws of a jurisdiction that recognizes such a series), or corporation.
(12) Qualified asset or interest The term qualified asset or interest, with respect to a business entity, means an asset or interest that is— (A) all or substantially all of the operating assets and the goodwill of the business entity; (B) all or substantially all of the operating assets of a division, or a subsidiary, of the business entity and the goodwill of that division or subsidiary; or (C) all of the ownership interest of any subsidiary of the business entity.
(13) Sale The term sale, with respect to a business entity, means the sale of the goodwill of the business entity, the sale or other disposal of all of the ownership interest of a seller in the business entity, or the sale of a qualified asset or interest with regard to the business entity.
The ownership definitions would include any partner or limited liability company member. For a corporation, an owner would need at least 5 percent of its stock; a corporate ownership interest would mean at least 5 percent of the stock of the business or, where applicable, its subsidiary.
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(7) Owner of a business entity The term owner of a business entity means— (A) in the case of a business entity that is a partnership (including a limited partnership or a limited liability partnership), any partner; (B) in the case of a business entity that is a limited liability company (including a series of a limited liability company formed under the laws of a jurisdiction that recognizes such a series), any member of such company; or (C) in the case of a business entity that is a corporation, a capital stockholder of the business entity who owns not less than 5 percent of the capital stock.
(8) Ownership interest The term ownership interest means— (A) in the case of a business entity that is a partnership (including a limited partnership or a limited liability partnership), a partnership interest; (B) in the case of a business entity that is a limited liability company (including a series of a limited liability company formed under the laws of a jurisdiction that recognizes such a series), a membership interest; or (C) in the case of a business entity that is a corporation, not less than 5 percent of the capital stock of the business entity or, as applicable, a subsidiary of the business entity.
The bill would preserve agreements preventing employees or individual contractors from disclosing trade secrets, including after their work ends. It would use the existing federal statutory definition of a trade secret, which the supplied text does not reproduce.
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Nothing in this Act shall preclude a person from entering into an agreement with an individual who is employed by, or performs work under contract with, such person with respect to the activities of such person in or affecting commerce to not disclose any information (including after the individual is no longer employed or performing work for the person) regarding the person, or the work performed by the individual for the person, that is a trade secret.
People engaging covered employees or individual contractors would have to post and maintain a conspicuous notice explaining the Act. The notice could be on their premises or where employee and applicant notices are customarily posted, physically or electronically.
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(a) Notice Any person who engages an individual who is employed by, or performs work under contract with, such person with respect to the activities of such person in or affecting commerce shall post and maintain notice of the provisions of this Act— (1) in a conspicuous place on the premises of such person; or (2) in a conspicuous place where notices to employees and applicants for employment are customarily posted physically or electronically by such person.
Violations of the noncompete prohibition or notice requirement would be treated as violations of a Federal Trade Commission rule against unfair or deceptive practices. The Commission would enforce those provisions using the jurisdiction, powers, and duties incorporated from the Federal Trade Commission Act. That Act's penalties, privileges, and immunities would apply, and the bill would preserve the Commission's other legal authority. The referenced Act is not supplied, so the full scope of those incorporated provisions cannot be determined from this bundle.
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(1) Unfair or deceptive acts or practices A violation of section 3 or 5(a) shall be treated as a violation of a rule defining an unfair or deceptive act or practice prescribed under section 18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).
(A) In general The Federal Trade Commission shall enforce sections 3 and 5(a) in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Federal Trade Commission Act (15 U.S.C. 41 et seq.) were incorporated into and made a part of this Act. (B) Privileges and immunities Any person who violates section 3 or 5(a) shall be subject to the penalties and entitled to the privileges and immunities provided in the Federal Trade Commission Act (15 U.S.C. 41 et seq.). (C) Authority preserved Nothing in this Act shall be construed to limit the authority of the Federal Trade Commission under any other provision of law.
The Secretary of Labor would investigate employer violations of the noncompete and notice provisions as the Secretary considers necessary. The Secretary could sue on an affected individual's behalf for appropriate legal or equitable relief, but would have to start that action within four years of the violation.
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(b) Department of Labor (1) In general The Secretary of Labor— (A) shall investigate as the Secretary determines necessary to determine violations of section 3 or 5(a) by an employer; and (B) may, subject to paragraph (2), bring an action in any court of competent jurisdiction to obtain the legal or equitable relief against an employer on behalf of an individual aggrieved by the violation as may be appropriate to effectuate the purposes of such sections. (2) Statute of limitations An action described in paragraph (1)(B) may not be commenced later than 4 years after the date on which the violation occurred.
Within 18 months after enactment, the Secretary of Labor would have to issue regulations as necessary to implement the Act, including the Secretary's enforcement authority, in consultation with the Federal Trade Commission Chair.
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(3) Regulations Not later than 18 months after the date of enactment of this Act, the Secretary of Labor, in consultation with the Chair of the Federal Trade Commission, shall issue regulations as necessary to carry out this Act, including with respect to the authority of the Secretary of Labor to enforce violations of section 3 or 5(a) in accordance with paragraph (1).
Within one year after enactment, the Federal Trade Commission and Secretary of Labor would have to develop shared enforcement standards and define their respective responsibilities to make their enforcement complementary.
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(c) Standards for dual enforcement Not later than 1 year after the date of enactment of this Act, the Federal Trade Commission and the Secretary of Labor shall, for the purposes of enforcing this Act— (1) develop shared standards for consistent enforcement; and (2) identify the scope of responsibility of the Federal Trade Commission and such scope of the Secretary of Labor to ensure complementary enforcement of this Act.
Both federal enforcers would have to create systems for individual complaints about alleged noncompete violations. Unless otherwise required by law, they could not disclose a complainant's identity or identifying information without that person's explicit consent.
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(d) Reporting violations (1) In general The Federal Trade Commission and the Secretary of Labor shall each establish a system to receive complaints by individuals regarding alleged violations of section 3. (2) Confidentiality Except as otherwise required by law, the Federal Trade Commission and the Secretary of Labor may not disclose the identity or identifying information of any individual providing a complaint under paragraph (1), without explicit consent from the individual.
An individual harmed by a violation of the Act could sue in an appropriate federal district court. The court could award actual losses caused by the violation and, for a successful action, litigation costs and reasonable attorney's fees.
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(e) Private right of action (1) In general An individual who is aggrieved by a violation of this Act may bring a civil action in any appropriate district court of the United States. (2) Relief In a civil action under paragraph (1), a court may award— (A) any actual damages sustained by the individual as a result of the violation; and (B) in the case of any successful action, the costs of the action and reasonable attorney’s fees, as determined by the court.
A state attorney general could sue on residents' behalf in an appropriate state or federal court when there is reason to believe a violation of the noncompete or notice provisions, or their implementing rules, threatens or harms residents' interests. Available remedies would include orders stopping violations or requiring compliance, damages, restitution, other compensation, and other appropriate equitable relief.
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(f) Enforcement by States (1) In general In any case in which the attorney general of a State has reason to believe that an interest of the residents of the State has been or is threatened or adversely affected by any person who violates any provision of section 3 or 5(a) or any rule promulgated under this Act to carry out such section, the attorney general of the State, as parens patriae, may bring a civil action on behalf of the residents of the State in an appropriate State court or an appropriate district court of the United States to— (A) enjoin any further such violation by the person; (B) compel compliance with section 3 or 5(a) or any such rule; (C) obtain a permanent, temporary, or preliminary injunction; (D) obtain damages, restitution, or other compensation on behalf of the residents of the State; or (E) obtain any other appropriate equitable relief.
The state-enforcement subsection would preserve attorneys general's existing authority under state law, including state-law proceedings, investigations, and demands for witnesses or evidence.
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(2) Preservation of state powers Nothing in this subsection shall be construed as altering, limiting, or affecting the authority of the attorney general of a State to— (A) bring an action or other regulatory proceeding arising solely under the laws in effect in that State; or (B) exercise the powers conferred on the attorney general by the laws of the State, including the ability to conduct investigations, administer oaths or affirmations, or compel the attendance of witnesses or the production of documentary or other evidence.
For alleged violations of the noncompete or notice provisions, agreements made before a dispute arises could not require arbitration or waive participation in joint, class, or collective proceedings. This rule would apply despite other provisions of law.
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(g) Arbitration and class action Notwithstanding any other provision of law, no predispute arbitration agreement or predispute joint-action waiver shall be valid or enforceable with respect to any alleged violation of section 3 or 5(a).
(10) Predispute arbitration agreement The term predispute arbitration agreement means an agreement to arbitrate a dispute that has not yet arisen at the time of the making of the agreement. (11) Predispute joint-action waiver The term predispute joint-action waiver means an agreement, whether or not part of a predispute arbitration agreement, that would prohibit, or waive the right of, one of the parties to the agreement to participate in a joint, class, or collective action in a judicial, arbitral, administrative, or other forum, concerning a dispute that has not yet arisen at the time of the making of the agreement.
The Federal Trade Commission and Secretary of Labor would each have to report their enforcement actions to Congress within one year after the Secretary issues regulations under section 6(b)(3). This reporting deadline would run from the regulations, rather than directly from enactment.
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Not later than 1 year after the date on which the Secretary of Labor issues any regulations under section 6(b)(3), the Federal Trade Commission and the Secretary of Labor shall each submit to Congress a report on any actions taken by the Federal Trade Commission or Secretary, respectively, to enforce the provisions of this Act.
The bill would borrow the meanings of commerce, employ, employee, employer, and person from the Fair Labor Standards Act. The supplied text identifies those statutory definitions but does not reproduce them.
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(4) Commerce The term commerce has the meaning given the term in section 3 of the Fair Labor Standards Act of 1938 (29 U.S.C. 203). (5) Employ; Employee; employer The terms employ, employee, and employer have the meanings given such terms in section 3 of such Act (29 U.S.C. 203).
The supplied official-actions snapshot, updated September 9, 2026, records introduction in the House on September 1, 2026, and referral that day to the Committees on Energy and Commerce and Education and Workforce for provisions within their respective jurisdictions.
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Source snapshot updated 2026-09-09T13:20:06Z.
2026-09-01: Referred to the Committee on Energy and Commerce, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Reviewed version: Introduced in House · 2026-09-01. These findings describe provisions and who may benefit; they are not judgments of waste, corruption, or motive.
This review covers the supplied bill text. “None identified” does not rule out provisions in later versions or accompanying reports and disclosures.
Provisions outside the bill’s main subject, or policy changes attached to appropriations.
None identified in the reviewed text
No provision unrelated to the bill's main subject, or policy change attached to appropriations, was identified in the complete supplied introduced text. This conclusion is limited to that version and does not establish the absence of riders in other versions or accompanying materials.
Spending directed to particular recipients or places outside ordinary competitive or formula-based allocation.
None identified in the reviewed text
No congressionally directed spending for particular recipients or places was identified in the complete supplied introduced text. This conclusion is limited to that version; the source set does not establish formal earmark status in accompanying materials or other versions.
Other targeted benefits
Narrow exceptions, exemptions, or preferential treatment that warrant a closer look.
Findings to examine
The supplied introduced text contains narrow exceptions to its general noncompete prohibition. These exceptions are connected to the main policy; their classification does not establish improper purpose.
Business buyers and qualifying successors would receive an exception allowing sellers to agree not to compete locally. It would preserve this protection where the business previously operated and the buyer or qualifying successor continues a similar business.
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(b) Exceptions (1) Sale of goodwill or ownership interest (A) In general A seller of a business entity may enter into an agreement with the buyer to refrain from carrying on a like business within a specified geographic area described in subparagraph (C), if the buyer, or any person deriving title to the goodwill of the business entity or an ownership interest in the business entity from the buyer, carries on a like business in such specified geographic area.
(C) Specified geographic area A specified geographic area described in this subparagraph is a geographic area— (i) that is specified in an agreement described in subparagraph (A), or a noncompete agreement described in subparagraph (B), regarding a business entity; and (ii) in which such business entity, including any division or subsidiary of such business entity, conducted business prior to the agreement or noncompete agreement.
Business buyers or sellers would receive a separate exception for noncompetes lasting up to one year with qualifying executives transferred through a sale. It would apply to major decision-makers in the seller's highest-paid 10 percent, require a qualifying local business to continue, and condition the exception on sale-related severance protection of at least one year's specified compensation.
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(i) In general Subject to clause (ii), a buyer or seller of a business entity may enter into a noncompete agreement with a senior executive official who has a severance agreement described in clause (iii) that restricts the senior executive official from performing, within a specified geographic area described in subparagraph (C), any work that is similar to the work that the senior executive official performed for the buyer or seller, if the buyer, or any person deriving title to the goodwill of the business entity or an ownership interest in the business entity from the buyer, carries on a like business in such specified geographic area. (ii) Time-limited agreement A noncompete agreement described in clause (i) may not restrict the senior executive official as described in such clause for a period that is more than one year.
(iii) Severance agreement A severance agreement described in this clause is an agreement between the buyer or seller of a business entity and a senior executive official that— (I) is part of the terms and conditions of the sale; and (II) requires monetary compensation for the senior executive official in the event of termination of the employment of the senior executive official at an amount that is not less than the compensation that the senior executive official is or would be reasonably expected to receive from the buyer during the 1-year period following the sale.
(15) Senior executive official The term senior executive official, with respect to a sale, means an official who was acquired as an employee of the buyer in such sale through the terms and conditions of the sale, and, on the day before the date of such sale— (A) who was employed by the seller in such sale; (B) who was responsible for making or directing major decisions of the seller; and (C) whose rate of compensation was in the highest 10 percent of the compensation rates for all employees of the seller.
Other partners and qualifying successors would receive an exception allowing a departing partner, or a partner in a dissolving partnership, to agree not to operate a similar business in an area where the partnership previously did business. The exception would require another partner or qualifying successor to continue a similar business there.
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(2) Partnership dissolution or disassociation (A) In general Any partner of a partnership may enter into an agreement with any other member of the partnership that, upon the dissolution of the partnership or dissociation of the partner from such partnership, the partner will refrain from carrying on a like business within a specified geographic area described in subparagraph (B), if any other member of the partnership, or any person deriving title to the partnership or the goodwill of the partnership from any other member of the partnership, carries on a like business in such specified geographic area. (B) Specified geographic area A specified geographic area described in this subparagraph is a geographic area— (i) that is specified in an agreement described in subparagraph (A); and (ii) in which any business of the partnership has been transacted prior to the agreement.
The bundle supplies the complete introduced text and an actions snapshot updated September 9, 2026. It does not establish subsequent amendments, passage, or enactment. Missing later history does not prove the bill never advanced or became law.
The referenced Fair Labor Standards Act definitions, Federal Trade Commission Act enforcement provisions, and federal trade secret definition are not reproduced. The bundle alone does not establish their full coverage, jurisdictional limits, penalties, privileges, or immunities.
The text ties covered noncompete agreements to entry after enactment and gives specific administrative deadlines, but supplies no separate general effective-date provision or overall sunset. Unlike the executive exception, the seller and partnership exceptions specify no maximum duration.
The congressional findings provide the proposal's stated rationale, not independent evidence of its likely wage, productivity, or employment effects.
No member spending requests, earmark disclosures, committee reports, conference materials, or amendment attachment history are supplied. The riders and benefits review is limited to this introduced text.
Full text preserved for this analysis. Legislative record snapshot: Sep 9, 2026. How PlainBill uses AI