House committee reviews bill to limit noncompetes and 'stay‑or‑pay' repayment clauses

Representative Kate Logan, who represents the Chittenden‑16 District, introduced H.334 on March 25, telling the House General & Housing Committee the bill would target two employer practices: use of noncompete agreements and so‑called “stay‑or‑pay” repayment clauses tied to training, tuition or sign‑on benefits.

The proposal would add two sections to the Vermont Fair Employment Practices Act. The first would broadly prohibit agreements that prevent an employee from working in the same capacity, a defined geographic area, or for a competitor for a period after separation. It would not invalidate nondisclosure agreements that protect trade secrets or confidential business information, nor would it outlaw non‑solicitation agreements that bar soliciting former employer clients or employees.

The bill also requires employers who currently have noncompetes to provide written…