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Committee reviews revised noncompete bill, preserves broad ban for health‑care providers
Summary
The committee reviewed draft 3.2 of H.205, which tightens noncompete rules, adds a broad prohibition for health‑care providers, and clarifies permitted non‑solicitation and stay‑or‑pay provisions. Medical and business groups voiced support for the health‑care carveout and raised concerns about fiduciary and loan language.
The House Commerce & Economic Development Committee turned to H.205 (draft 3.2) on Feb. 11, reviewing changes to noncompete and stay‑or‑pay provisions and discussing a broad exemption for health‑care providers.
Sophie Sedatny of the Office of Legislative Council said the revised draft removes some narrow executive/startup definitions and sets a single, narrower exception for individually negotiated agreements with exempt employees who meet strict criteria. Those criteria include a requirement that the employee earn at least 250% of the state minimum wage (now about $75,000) and that…
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