[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4254 Introduced in House (IH)]

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114th CONGRESS
  1st Session
                                H. R. 4254

 To prohibit employers from requiring grocery store employees to enter 
         into covenants not to compete, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 15, 2015

  Mr. Kilmer introduced the following bill; which was referred to the 
                Committee on Education and the Workforce

_______________________________________________________________________

                                 A BILL


 
 To prohibit employers from requiring grocery store employees to enter 
         into covenants not to compete, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Freedom for Workers to Seek 
Opportunity Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Commerce.--The term ``commerce'' has the meaning given 
        such term in section 3 of the Fair Labor Standards Act of 1938 
        (29 U.S.C. 203).
            (2) Covenant not to compete.--The term ``covenant not to 
        compete'' means an agreement--
                    (A) between an employee and employer that restricts 
                such employee from performing--
                            (i) any work for another employer for a 
                        specified period of time;
                            (ii) any work in a specified geographical 
                        area; or
                            (iii) work for another employer that is 
                        similar to such employee's work for the 
                        employer included as a party to the agreement; 
                        and
                    (B) that is entered into after the date of 
                enactment of this Act.
            (3) Employee; employer; enterprise; enterprise engaged in 
        commerce or in the production of goods for commerce; goods.--
        The terms ``employee'', ``employer'', ``enterprise'', 
        ``enterprise engaged in commerce or in the production of goods 
        for commerce'', and ``goods'' have the meanings given such 
        terms in section 3 of the Fair Labor Standards Act of 1938 (29 
        U.S.C. 203).
            (4) Grocery store.--The term ``grocery store'' means an 
        establishment that sells food for home preparation and 
        consumption and offers for sale, on a continuous basis, a 
        variety of foods in each of the following categories of staple 
        foods, including perishable foods in at least two of the 
        categories:
                    (A) Meat, poultry, or fish.
                    (B) Breads and cereals.
                    (C) Vegetables and fruits.
                    (D) Dairy products.
            (5) Grocery store employee.--The term ``grocery store 
        employee'' means an employee who is employed by a grocery 
        store.
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of Labor.
            (7) State.--The term ``State'' has the meaning given such 
        term in section 3 of the Fair Labor Standards Act of 1938 (29 
        U.S.C. 203).

SEC. 3. PROHIBITION ON COVENANTS NOT TO COMPETE AND OTHER AGREEMENTS 
              RESTRICTING THE MOBILITY OF GROCERY STORE EMPLOYEES.

    (a) Covenant Not To Compete.--
            (1) In general.--No employer shall enter into a covenant 
        not to compete with any grocery store employee of such 
        employer, who in any workweek is engaged in commerce or in the 
        production of goods for commerce (or is employed in an 
        enterprise engaged in commerce or in the production of goods 
        for commerce).
            (2) Notice.--An employer subject to subsection (a) shall 
        post, in a conspicuous place on the premises of such employer, 
        a notice of the prohibition set forth in such subsection.
    (b) Purchase Agreements.--No employer who owns or operates at least 
one grocery store may, in conjunction with the purchase of one or more 
grocery stores owned or operated by another employer, include in any 
agreement between such employers any provision that restricts either 
employer from hiring a grocery store employee of the other employer.

SEC. 4. GROCERY STORE EMPLOYEE RETENTION OF SENIORITY AND BENEFITS 
              AFTER ACQUISITION OR MERGER.

    An employer who acquires the operations of another employer 
(hereafter referred to as the former employer) and retains in 
employment a grocery store employee of the former employer at the same 
grocery store of the former employer shall continue to recognize, for 
all employment purposes, the seniority of such grocery store employee, 
and, to the extent practicable, make available to such employees any 
benefits made available by the former employer.

SEC. 5. ENFORCEMENT.

    (a) In General.--The Secretary shall receive, investigate, attempt 
to resolve, and enforce a complaint of a violation of section 3 or 4 in 
the same manner that the Secretary receives, investigates, and attempts 
to resolve a complaint of a violation of section 6 or 7 of the Fair 
Labor Standards Act of 1938 (29 U.S.C. 206 and 207), subject to 
subsection (b).
    (b) Civil Fine.--
            (1) Maximum fine.--The Secretary shall impose a civil 
        fine--
                    (A) with respect to any employer who violates 
                section 3(a) or 4, an amount not to exceed $5,000 for 
                each employee who was the subject of such violation; 
                and
                    (B) with respect to any employer who violates 
                section 3(b), an amount not to exceed $5,000.
            (2) Consideration.--In determining the amount of any civil 
        fine under this subsection, the Secretary shall consider the 
        appropriateness of the fine to the size of the employer subject 
        to such fine and the gravity of the applicable violation.
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