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Business groups warn nonprofits and insurers on broad noncompete ban as low‑income advocates press limits for low‑wage workers
Summary
The committee heard dueling testimony on HB 7196: legal‑aid advocates and worker‑rights groups urged limits on noncompete agreements for low‑wage workers, while industry groups — particularly independent insurance agents and business associations — warned a broad ban would harm businesses that rely on client books and trade‑secret protections.
HB 7196, a proposed limitation on noncompete agreements, drew sharply divided testimony.
Workers’ and legal‑aid perspective - Legal services programs and worker advocates testified in favor of strict limits on noncompetes for low‑wage workers. Sarah Parker McKiernan (legal services) and others said wide use of noncompetes for workers who lack trade secrets (house cleaners, low‑wage service staff) reduces mobility, lowers wages and entrenches inequality. The bill’s proposed threshold would prohibit noncompetes for employees earning less than three times the state minimum wage and restrict enforceability above that threshold…
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