The Workforce Mobility Act of 2025 aims to broadly prohibit the use of noncompete agreements across various sectors and occupations. The bill's findings assert that noncompete agreements are detrimental to worker wage growth, restrict mobility, impede innovation, and are less effective than other available legal protections for employers, such as trade secret and intellectual property protections.

Under this Act, no person shall enter into, enforce, or attempt to enforce a noncompete agreement with any individual, rendering such agreements without force or effect. However, the bill outlines specific exceptions. These include agreements made during the sale of a business entity, allowing the seller to refrain from carrying on a similar business within a specified geographic area. Another exception applies to senior executive officials who have a severance agreement as part of a business sale, restricting them for a maximum of one year, provided the severance includes substantial monetary compensation.

The legislation clarifies that it does not preclude agreements to protect trade secrets. Employers are mandated to post notice of the Act's provisions in conspicuous places. Enforcement responsibilities are shared among the Federal Trade Commission, the Department of Labor, and State Attorneys General, with both federal agencies required to establish systems for receiving complaints and developing consistent enforcement standards. Furthermore, the bill grants individuals a private right of action to seek damages and legal costs for violations, and it invalidates predispute arbitration agreements or joint-action waivers related to these violations.