Bill Overview
Title: Restoring Workers’ Rights Act of 2022
Description: This bill prohibits an employer from enforcing, or threatening to enforce, any non-compete agreement in employment contracts. This prohibition does not apply to employees who are exempt from federal overtime pay requirements. A non-compete agreement entered into before the enactment of this bill shall be void and have no effect.
Sponsors: Rep. Garcia, Mike [R-CA-25]
Target Audience
Population: Employees subject to non-compete agreements
Estimated Size: 30000000
- The bill affects employees who are currently working under a non-compete agreement, as it renders these agreements void and non-enforceable.
- It does not affect exempt employees under federal overtime pay requirements, so certain categories of higher-level or specialized employees may not benefit directly.
- Non-compete agreements are common in many industries, including technology, sales, and healthcare, among others.
- The prohibition will particularly benefit employees who wish to change jobs or start their own businesses but are restricted by non-compete agreements.
Reasoning
- The primary demographic affected by this policy comprises employees working under non-compete agreements, which are common in industries like technology, healthcare, and sales.
- Due to the budget constraints, it is essential to focus on individuals who would significantly benefit from the policy, i.e., those restricted in job mobility or entrepreneurial opportunities due to these agreements.
- Higher-level employees who are exempt from federal overtime pay likely have different contractual arrangements and will not be directly impacted.
- The policy's immediate effect will be on the sense of freedom and potential for career changes or business opportunities, thus impacting Cantril wellbeing scores.
- Cost and size limits suggest concentrating on sectors with high non-compete usage and where individuals are most constrained by these agreements.
- The policy is expected to have a high impact on those directly restricted by non-compete clauses, with freedom to change jobs or start businesses enhancing overall life satisfaction.
Simulated Interviews
Software Developer (San Francisco, CA)
Age: 28 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 14/20
Statement of Opinion:
- This policy would change my life. I've been wanting to create my own tech company for years, but the non-compete made it impossible.
- I feel stuck in my current job due to the non-compete clause.
- I fully support this change as it aligns with job mobility and freedom.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 9 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Healthcare Sales Manager (Austin, TX)
Age: 35 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 15.0 years
Commonness: 16/20
Statement of Opinion:
- The bill opens up a lot of career possibilities for me.
- It'll reduce my anxiety about job security; previously, I felt trapped in my role.
- This is a positive step towards fairer employee rights.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 9 | 8 |
Research Scientist (Boston, MA)
Age: 42 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 12/20
Statement of Opinion:
- I plan to pursue a new job but was blocked by my current non-compete.
- This legislation is a big win for scientists who want to benefit from their own innovations.
- Finally, we can look at broader career options without legal constraints.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 9 | 5 |
| Year 3 | 9 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 10 | 7 |
| Year 20 | 10 | 8 |
Digital Marketing Specialist (New York, NY)
Age: 29 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 13/20
Statement of Opinion:
- Despite being in a competitive industry, the current agreement holds me back from exploring new markets.
- I'm ready to take risks without the handcuffs of a non-compete.
- This law will increase innovation and movement in our field.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 9 | 7 |
Construction Project Manager (Minneapolis, MN)
Age: 50 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 10/20
Statement of Opinion:
- I used to be stressed about restrictions in my field, but now I have more control over my career.
- For new employees, eliminating non-competes can be life-altering.
- While it no longer affects me, I understand its huge potential benefit for many others.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Chef (Seattle, WA)
Age: 37 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 8/20
Statement of Opinion:
- This is the opportunity I needed to finally pursue my dream business.
- Eliminating the non-compete gives a real sense of freedom and potential.
- This supports local business growth significantly.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 6 |
| Year 2 | 9 | 6 |
| Year 3 | 9 | 6 |
| Year 5 | 10 | 7 |
| Year 10 | 10 | 7 |
| Year 20 | 10 | 7 |
Graphic Designer (Miami, FL)
Age: 30 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 11/20
Statement of Opinion:
- Non-compete clauses make it hard for creatives like me to work across various platforms.
- Freelancing is where I see myself thriving the most.
- This act would enhance my life quality drastically by providing career flexibility.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 8 | 5 |
| Year 3 | 9 | 5 |
| Year 5 | 9 | 6 |
| Year 10 | 10 | 7 |
| Year 20 | 10 | 7 |
Financial Consultant (Chicago, IL)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 15/20
Statement of Opinion:
- As someone who works with confidential information, the non-compete is partially justified.
- The policy may cause sector-specific concerns about information security.
- Not too impactful on my current job satisfaction, but notable for future changes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Engineering Intern (Los Angeles, CA)
Age: 22 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 17/20
Statement of Opinion:
- I'm new to the workforce and felt limited by non-compete clauses even in entry roles.
- This change opens up paths in my career when it's crucial for growth.
- I might pursue roles that align better with my long-term goals.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Retired Lawyer (Dallas, TX)
Age: 60 | Gender: male
Wellbeing Before Policy: 9
Duration of Impact: 0.0 years
Commonness: 5/20
Statement of Opinion:
- Reflecting on my career, I see how vital this legislation is.
- I've seen clients struggle due to these constraints, this will positively change the landscape for many.
- Though retired, I support policies that enhance workplace freedom.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Cost Estimates
Year 1: $50000000 (Low: $30000000, High: $70000000)
Year 2: $45000000 (Low: $25000000, High: $65000000)
Year 3: $40000000 (Low: $20000000, High: $60000000)
Year 5: $30000000 (Low: $10000000, High: $50000000)
Year 10: $10000000 (Low: $5000000, High: $40000000)
Year 100: $1000000 (Low: $500000, High: $5000000)
Key Considerations
- Regulation of new job contracts and monitoring for compliance may require new government resources.
- Affected workers might experience an initial transitional period, during which legal and advisory services see heightened demand.