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Senate committee advances bill banning most noncompete agreements, exempts business sales and certain professionals
Summary
Senate File 107, branded "freedom to work and build business," would void most noncompetes for employment contracts entered on or after July 1, 2025, while preserving exceptions for business sale agreements, trade secrets, limited training-cost recovery, executives, and physicians.
Senate File 107, which would void most employer-employee noncompete agreements entered on or after July 1, 2025, was advanced by the Senate Judiciary Committee following a lengthy policy debate and public testimony.
"Any covenant not to compete that restricts the right of any person to receive compensation for performance of skilled or unskilled labor shall be void," Majority Floor Leader Senator Nethercott told the committee as he described the bill. The draft includes several explicit exceptions: covenants in contracts for the sale of a business or business assets; protection for trade secrets; contractual recovery for employee training or education expenses limited to less than two years; and noncompete provisions for executive and management personnel.
The bill contains a physician-specific provision that would void…
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