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Debate divides House over narrow ban on enforcing last-minute noncompetes; substitute fails
Summary
First substitute HB81, intended to bar enforcement of post-employment restrictive covenants imposed in bad faith on current employees terminated within six months without new consideration, failed after extended debate over timing and interaction with an ongoing stakeholder process.
Lawmakers extensively debated first substitute HB81 on Feb. 17, 2017. Representative Green sponsored a measure aimed at addressing a specific alleged abuse: employers asking existing employees to sign non‑compete agreements and then terminating them shortly thereafter to restrict future employment. Green’s bill would create a statutory presumption that a non‑compete imposed in that way and followed by termination within six…
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