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Committee considers broad noncompete restrictions in amended HB205; hospitals and unions asked for testimony
Summary
Committee reviewed draft 2.3 of HB205, which would largely prohibit noncompete agreements for nonexempt employees, add carve-outs for senior executives and certain startup employees, and create a blanket prohibition for health-care providers; lawmakers asked for hospital and union testimony on potential staffing impacts.
Committee staff presented proposed amendments to House Bill 205 on Feb. 4, offering a reworked draft that would broadly prohibit agreements not to compete for most employees while preserving limited carve-outs for defined senior executives and certain startup employees. Sophie, the presenter, told the House Commerce and Economic Development committee the draft discourages noncompetes for nonexempt employees and clarifies definitions and exceptions.
Key changes in draft 2.3 include: defining "health care services" broadly to cover diagnosis, treatment, counseling, devices and related products; excluding teacher contracts governed by 16 V.S.A. §1752 from the noncompete ban;…
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