Committee hears proposal to bar noncompetes for nonexempt workers; members debate wage gate
The House Committee on General and Housing reviewed draft language to add a narrow noncompete ban to S.230, prohibiting agreements not to compete for nonexempt employees and preserving collective-bargaining carve-outs; lawmakers and counsel debated whether to tie the ban to FLSA exempt/nonexempt tests or use a fixed wage threshold.
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Sophie, legislative counsel at the Office of Legislative Counsel, told the House Committee on General and Housing on April 14 that a proposed addition to S.230 would insert a new section in the Fair Employment Practices Act to prohibit agreements not to compete with nonexempt employees, calling them "presumptively coercive" unless the term was part of a collective bargaining agreement.
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