Republican Anna Paulina Luna and Democrat Ro Khanna Team Up on a Bill to Ban Non-Compete Agreements for Workers Earning Under $100,000
The Workers' Right To Compete Act would void existing and future non-competes within 30 days of passing. Khanna says JD Vance has called them unenforceable. The FTC dropped its own ban after a court struck it down.
Rep. Anna Paulina Luna, R-Fla., and Rep. Ro Khanna, D-Calif., have introduced a bill to ban companies from imposing non-compete agreements on workers who earn less than $100,000 a year, Fox Business reports. Fox obtained the bill text first.
What it does. The Workers' Right To Compete Act would ban future non-competes and also end existing ones within 30 days of becoming law. Workers who were tied to such contracts could then seek new jobs. Luna said the bill "protects that freedom and puts Americans in charge of their opportunities and earning potential."
The pitch. Khanna called it something "people should easily be able to get behind" and said it could bring the country together after the election. He said Vice President JD Vance has called non-competes unenforceable. Fox says it contacted Vance for comment and its report includes no reply.
The evidence. Khanna pointed to private equity firm KKR, which barred companies it bought from using non-competes on employees earning under $100,000. He said the firm found it "actually improved the economic performance of the companies." KKR's Pete Stavros told Bloomberg that economists say non-competes suppress wages. Fox cites a 2021 Minneapolis Fed article saying wages for hourly workers in Oregon rose 2 to 3 percent after the state ended enforcement for them.
The California argument. Khanna credited California's ban on non-competes for its startup culture, saying workers there can leave one tech company for another. He said he would prefer a floor higher than $100,000 but chose a number that could pass.
The history. The Federal Trade Commission voted in 2024 for a rule banning non-competes, then dropped it after a federal district court struck it down.
Note for readers: the economic claims come from the bill's sponsors and the sources they cite. Fox's report includes no voice from business groups that favor non-competes, and the bill has not had a vote. We read Fox Business's report, not the bill.