Federal

EVEN Act

Source: Congress.gov · 857 words in original text

What This Bill Does

This bill makes non-compete agreements (contracts that prevent workers from competing with their former employer) unenforceable if an employee was fired for refusing to get a COVID-19 vaccine. The bill also directs a federal agency to create regulations prohibiting employers from enforcing these agreements against workers fired for not complying with vaccine mandates.

Who It Affects

Employees and former employees who were fired for not receiving a COVID-19 vaccine, employers with non-compete agreements, the Federal Trade Commission (the agency that enforces consumer protection laws), and state attorneys general.

Key Provisions

• Non-compete agreements become unenforceable for any employee or former employee fired for not getting a COVID-19 vaccine (Sec. 2) • The Federal Trade Commission must issue regulations within 60 days after the bill becomes law to prohibit employers from enforcing non-compete agreements against workers fired for refusing a vaccine (Sec. 3(a)) • Violating this prohibition counts as an unfair or deceptive business practice under federal law and the Federal Trade Commission can enforce penalties (Sec. 3(b)(1) and 3(b)(2)) • State attorneys general can file lawsuits in federal or state court to stop violations, enforce compliance, collect penalties, and get compensation for affected residents (Sec. 3(b)(3))

What Changes

If this bill becomes law, employers cannot legally enforce non-compete agreements against workers they fired for not receiving a COVID-19 vaccine. The Federal Trade Commission gains authority to regulate and punish employers who try to enforce these agreements.

Important Definitions

The bill defines "non-compete agreement" as a contract between an employer and employee that prevents the employee from working for another employer for a certain time period, in a certain geographical area, or in similar work after leaving the job (Sec. 3(c)(3)).

I 118TH CONGRESS 1ST SESSION H. R. 527 To void existing non-compete agreements for any employee who is fired for not complying with an employer’s COVID–19 vaccine mandate, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JANUARY 25, 2023 Ms. TENNEY (for herself, Mr. STEUBE, and Mrs. LUNA) introduced the fol- lowing bill; which was referred to the Committee on Education and the Workforce, and in addition to the Committee on Energy and Commerce, 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 A BILL To void existing non-compete agreements for any employee who is fired for not complying with an employer’s COVID–19 vaccine mandate, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Ensure Vaccine Man- 4 dates Eliminate Non-Competes Act’’ or the ‘‘EVEN Act’’. 5 VerDate Sep 11 2014 02:19 Feb 06, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H527.IH H527 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 527 IH SEC. 2. CERTAIN NON-COMPETE AGREEMENTS UNEN- 1 FORCEABLE. 2 Any non-compete agreement between an employer 3 and an employee or former employee who has been fired 4 for not receiving a COVID–19 vaccine shall be unenforce- 5 able. 6 SEC. 3. PROHIBITION ON CERTAIN NON-COMPETE AGREE- 7 MENTS. 8 (a) REGULATIONS REQUIRED.—Not later than 60 9 days after the date of the enactment of this Act, the Com- 10 mission shall issue regulations under section 553 of title 11 5, United States Code, to prohibit an employer from en- 12 forcing a non-compete agreement with an employee or 13 former employee who has been fired for not receiving a 14 COVID–19 vaccine. 15 (b) ENFORCEMENT.— 16 (1) UNFAIR OR DECEPTIVE ACTS OR PRAC- 17 TICES.—A violation of this section or a regulation 18 promulgated under this section shall be treated as a 19 violation of a regulation under section 18(a)(1)(B) 20 of the Federal Trade Commission Act (15 U.S.C. 21 57a(a)(1)(B)) regarding unfair or deceptive acts or 22 practices. 23 (2) POWERS OF THE COMMISSION.—The Com- 24 mission shall enforce this section and the regulations 25 promulgated under this section in the same manner, 26 VerDate Sep 11 2014 02:19 Feb 06, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H527.IH H527 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 527 IH by the same means, and with the same jurisdiction, 1 powers, and duties as though all applicable terms 2 and provisions of the Federal Trade Commission Act 3 (15 U.S.C. 41 et seq.) were incorporated into and 4 made a part of this section, and any person who vio- 5 lates this section or a regulation promulgated under 6 this section shall be subject to the penalties entitled 7 to the privileges and immunities provided in the 8 Federal Trade Commission Act. 9 (3) ENFORCEMENT BY STATE ATTORNEYS GEN- 10 ERAL.—If the chief law enforcement officer of a 11 State, or an official or agency designated by a State, 12 has reason to believe that any person has violated or 13 is violating this section or a regulation promulgated 14 under this section, the attorney general, official, or 15 agency of the State, in addition to any authority it 16 may have to bring an action in State court under its 17 consumer protection law, may bring a civil action in 18 any appropriate United States district court or in 19 any other court of competent jurisdiction, including 20 a State court, to— 21 (A) enjoin further such violation by such 22 person; 23 (B) enforce compliance with such sub- 24 section; 25 VerDate Sep 11 2014 02:19 Feb 06, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H527.IH H527 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 527 IH (C) obtain civil penalties; and 1 (D) obtain damages, restitution, or other 2 compensation on behalf of residents of the 3 State. 4 (c) DEFINITIONS.—In this section: 5 (1) COMMISSION.—The term ‘‘Commission’’ 6 means the Federal Trade Commission. 7 (2) EMPLOYER.—The term ‘‘employer’’ has the 8 meaning given in section 3 of the Fair Labor Stand- 9 ards Act of 1938 (29 U.S.C. 203). 10 (3) NON-COMPETE AGREEMENT.—The term 11 ‘‘non-compete agreement’’ means an agreement, en- 12 tered into between an employer and an employee, 13 that restricts such employee from performing, after 14 the employment relationship between the employer 15 and the employee terminates, any of the following: 16 (A) Any work for another employer for a 17 specified period of time. 18 (B) Any work in a specified geographical 19 area. 20 (C) Any work for another employer that is 21 similar to such employee’s work for the em- 22 ployer that is a party to such agreement. 23 Æ VerDate Sep 11 2014 02:19 Feb 06, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H527.IH H527 kjohnson on DSK79L0C42PROD with BILLS

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