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Committee weighs bill to void noncompetition agreements and require employer notices
Summary
A proposed substitute to SB 5,437 would void noncompetition covenants, require employers to notify affected workers by Oct. 1, 2026, and creates a private right of action including statutory damages; unions supported abolition while businesses urged narrow exemptions for executives and post‑employment limits.
Senate Bill 5,437 (proposed substitute) would make noncompetition covenants void and unenforceable regardless of when they were signed, expand the definition of prohibited covenants, and require employers to provide written notice by Oct. 1, 2026 that such agreements are void.
Committee staff outlined the changes: the substitute adds an intent section, updates an effective date and removes the current earnings thresholds used to determine…
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