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Fired over vaccine refusal? Noncompete nullified, GOP bill proposes

November 3, 2021

A Republican bill introduced in the House on Wednesday proposes that any employee fired for refusal to take a coronavirus vaccine would be freed from any noncompete agreement signed with their employer.

New York Rep. Claudia Tenney is the lead sponsor of the bill, dubbed the Employment Freedom for All Act, which was shared with the Washington Examiner ahead of introduction. It is partner legislation to the Health Freedom for All Act, a bill to prevent the Biden administration from enacting its planned vaccine mandates on private businesses.

“Forcing Americans into unemployment is the absolute wrong move. It would be unconscionable to prevent Americans who are fired from securing employment elsewhere,” Tenney said in a statement.

President Joe Biden in September called on the Occupational Safety and Health Administration to develop rules that require companies with at least 100 employees to be vaccinated against coronavirus or tested once per week. The rule would affect 80 million to 100 million workers, and fines could be up to $14,000 per violation. The rule has not yet been published but is expected in the coming days.

At the same time, anywhere from 36 million to 60 million Americans are subject to noncompete agreements, according to an Economic Policy Institute estimate. Noncompete agreements prohibit employees from going to work for a competitor within a certain time frame after leaving their job. Specific circumstances vary by contract, but generally, a noncompete is still valid even if an employee is fired from their job.

That creates the possibility that those fired from their jobs over refusal to get the vaccine or weekly tests could be legally prohibited from taking a similar job with another employer, forcing a career change or unemployment.

Tenney’s bill aims to solve that situation by requiring the Federal Trade Commission to issue regulations within 60 days that prohibit an employer from enforcing a noncompete agreement for any worker fired for not taking the coronavirus vaccine.

“Our nation is at a turning point, and we have the power right now to decide if we will sink or swim in the days ahead. We face significant supply chain disruptions and employee shortages in virtually every industry, and vaccine mandates will push us further under,” Tenney said. “I will never stop fighting for workers and the individual liberties that are being sabotaged.”

A Democratic-controlled House is unlikely to pass the bill, but it could serve as a messaging vehicle for Republicans concerned about the implications of vaccine mandates.

The bill could be moot depending on how another proposed Biden rule is eventually crafted and implemented. Biden in July signed an executive order directing the Federal Trade Commission to restrict or ban noncompete agreements, as well as “unnecessary, cumbersome occupational licensing requirements that impede economic mobility.”

Biden’s distaste for noncompete agreements has so far not led any Democrats to find common ground with Tenney and sign on to her bill, though. All co-sponsors of the bill so far are Republicans, including Reps. Louie Gohmert of Texas, Jody Hice of Georgia, Tracey Mann of Kansas, Brian Mast of Florida, Mary Miller of Illinois, William Timmons of South Carolina, and Brett Guthrie of Kentucky.