Legislation Regulating Non-Compete Agreements Goes to the House Floor

H.1, legislation regulating non-compete agreements, was approved by the House Commerce and Economic Development Thursday and will be taken up on the House Floor next week.

The Committee and stakeholders have been wrestling with H.1 since early last year.  The bill has gone through some extremely restrictive and burdensome versions over that time.  Although issues with the bill have been mitigated, concerns remain, and the bill might well worsen again if it is eventually taken up in the Senate.

The core the of the bill only allows non-compete agreements with “key employees”, defined as:

  • an individual who is an executive, administrative, or professional employee; and
  • earns wages or a salary equal to at least one and one-half times the Vermont average annual wage (very roughly around $75,000).

Also, the employer must pay for up to two hours of a lawyer reviewing a non-compete agreement for the employee before the employee agrees to sign it.  The agreement must be provided for review 10 days before a promotion or change in responsibilities for an existing employee or the earlier of 10 days or an offer of employment for a new employee.

To review the full text of the bill as passed out of committee, click here.  Members with concerns or other interest in this legislation are strongly encouraged to contact us to discuss these issues further.  Updates will be provided as warranted as the bill progresses.

More Information and Contacting Legislators

For more information about this issue, including options for engaging with legislators, please contact us at info@aivt.org.

If you want to find your legislators and their contact information, click here.  You can also leave messages for legislators with the Sergeant at Arms Office at 802.828.2228.