Committee explores ban on noncompetes for hourly workers and health-care providers

The Vermont House Committee on Commerce and Economic Development discussed new language to prohibit noncompete agreements for nonexempt (hourly) employees and for health-care providers during its April 16 meeting.

Committee member Ellen Bennett, who identified herself during the meeting, summarized the update and said the revisions narrow the measure to two elements: a ban on noncompetes for nonexempt employees and a separate ban for health-care providers. "It's just saying noncompetes are not allowed for nonexempt employees. And, also, noncompetes are not allowed for health care providers," Bennett said.

Supporters told the committee the narrower approach simplifies a previously broader package. One member said the change aligns the bill with the committee's earlier intent to protect lower-wage workers while preserving enforcement clarity for employers. Members discussed related provisions under consideration, including non-solicitation and nondisparagement language intended to preserve worker mobility while protecting some employer interests.

Committee members pressed for clarity about definitions and limits. The draft discussed during the meeting ties coverage to the nonexempt/exempt classification under federal wage-and-hour rules rather than to a specific salary cutoff, though one speaker referenced a figure in committee materials ("300300% of minimum wage") that members asked staff to confirm.

Committee members said they would circulate the revised text and expect additional walkthroughs. Chair Kevin Sales asked members to provide suggested edits to staff and indicated the committee would try to vote on the revised language Wednesday afternoon if materials are ready.

Next steps: the committee will circulate the updated draft language, schedule a walk-through, and aim for a vote later in the week if clarifying edits are completed.