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Committee hears bill to ban non‑competes for lower‑paid workers; drafting fixes requested
Summary
Representative Wade proposed HB1188 to bar non‑compete agreements for employees earning under a higher threshold and limit all non‑competes to 12 months. The Department of Labor supported technical changes; committee asked the sponsor to return with drafting fixes.
The House Labor Committee held a public hearing on HB1188, a proposal to narrow the use of non‑compete agreements for lower‑paid workers and cap the duration of such agreements to 12 months.
Representative Alice Wade said the bill would raise the existing salary threshold — currently tied to 200% of the federal minimum wage — to 500% and impose a 12‑month limit on enforceable non‑competes. She framed the change as restoring worker mobility for roles that do not involve trade secrets and cited Federal Trade Commission analysis that non‑competes suppress wages.
Deputy Commissioner Danielle Albert and legislative liaison Cassie Abbott of the Department of Labor reviewed technical drafting issues. The department asked the committee to standardize usage of “employer” (rather than “company”) and to clarify hourly vs. annual definitions so enforcement is administrable. Representative Wade agreed to work with the committee to submit an amendment refining the threshold language and the duration clause.
No final committee action was taken; members asked the sponsor and staff to return with clarified drafting and any technical fiscal notes.
What’s next: The sponsor expects to submit technical amendments before the committee’s executive session.
