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Committee weighs H.205 limits on noncompetes while stakeholders seek clarifications
Summary
The House Commerce & Economic Development committee reviewed H.205 on Feb. 19, 2026, debating a contested exempt‑employee carveout, a 250% wage threshold and narrower health‑care and stay‑or‑pay definitions as business, health‑care and labor stakeholders testified.
The Beaumont House Committee on Commerce & Economic Development spent much of its Feb. 19 hearing reviewing H.205, a bill that would add provisions to the Fair Employment Practices Act limiting agreements not to compete and regulating stay‑or‑pay repayment clauses.
Sophie Sodany of the Office of Legislative Council walked the panel through draft 4.2, describing two main additions: limits on noncompete agreements and a tightened definition of ‘‘stay‑or‑pay’’ repayment provisions. She said the draft narrows a non‑solicit exception to permit only health‑care providers to notify former patients of a change in practice and proposed an exempt‑employee exception that would allow some noncompetes if they are individually negotiated, reasonable in time and scope and the employee earns at least 250% of the state minimum wage (about $75,000 under current law).
Why it matters: the exempt‑employee carveout and the income threshold…
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