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Committee advances substitute limiting noncompetes for most workers, keeping narrow executive carve‑outs
Summary
Representative Clancy’s first substitute to HB 203 would ban most noncompete agreements (including for independent contractors, students and many lower‑paid workers), require notice, and set a high salary carve‑out for enforceable noncompetes; the committee adopted the substitute and recommended the bill favorably after extensive testimony from economists, business groups and legal experts.
Representative Clancy presented the first substitute to HB 203, described by the sponsor as a targeted policy that would restrict the routine use of noncompete agreements while preserving tools such as non‑disclosure and non‑solicitation agreements and narrow protection for true executives. The substitute would prohibit enforcement of many noncompetes (including against independent contractors and workers under specified ages), require upfront disclosure, and include an income threshold the sponsor cited as $155,000 to limit the ban’s reach to…
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