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House backs limits on noncompete agreements, replacing fixed one-year rule with 'reasonable' standard
Summary
Second substitute HB251 passed the House after extended debate. Sponsor Representative Schultz said the bill replaces a strict one-year post-employment cap with a 'reasonable' test (time, scope, geographic market), exempts trade secrets and confidentiality protections, and allows mutually agreed severance arrangements. Advocates said the change would spur startups and mobility; critics warned of vagueness and litigation risk.
Representative Schultz presented second substitute HB251 on the House floor as a targeted reform of post-employment restrictive covenants. The substitute removes a hard one-year limit on post-employment covenants and instead requires that any restriction be reasonable in duration, geographic scope and market effect. Schultz emphasized the bill preserves protections for trade…
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