This bill amends existing law regarding non-compete agreements, specifically targeting lower-income workers, now referred to as "qualifying employees." The bill prohibits employers from requiring qualifying employees—defined as those earning an hourly rate less than or equal to 500 percent of the federal minimum wage—from entering into non-compete agreements. The previous term "low-wage" has been replaced with "qualifying," and the income threshold has been increased from 200 percent to 500 percent of the federal minimum wage. Additionally, the bill clarifies that any non-compete agreement entered into with a qualifying employee will be void and unenforceable.

Furthermore, the bill introduces a new provision that prohibits employers from requiring any qualifying employee to enter into an agreement that restricts their ability to work for another company for more than 12 months following the termination of their employment. This change aims to enhance job mobility and protect the rights of lower-income workers in the labor market. The act is set to take effect 60 days after its passage.

Statutes affected:
Introduced: 275:70-a
HB1188 text: 275:70-a