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House Commerce & Economic Development Committee hears broad support for limiting noncompete agreements in H.205
Summary
At a Jan. 28 hearing on H.205, health‑care, labor, banking and business representatives and a chiropractor urged narrower use of noncompete clauses, debated a $100,000 salary threshold and sought clearer definitions for 'executive' status, nonsolicitation notices and proration of stay‑or‑pay agreements.
MONTPELIER — The Vermont House Commerce & Economic Development Committee on Wednesday heard several hours of testimony on H.205, a bill that would limit employers’ use of covenants not to compete. Witnesses from health‑care, labor and business groups expressed broad support for curbing noncompetes while disagreeing about how narrowly to define exemptions.
Jessa Barnard, executive director of the Vermont Medical Society, told the committee she supports restricting noncompetes "to the maximum extent possible," arguing they reduce clinicians’ mobility and patients’ access to care, especially in rural areas. Barnard said the draft’s executive‑employee exception is a reasonable starting point but urged clearer statutory language about who qualifies as an executive and stronger nonsolicitation notice rules so patients can learn where a provider has…
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