Establishes standards in regard to covenants not to compete
HB 1326 prohibits employers from enforcing non-compete agreements against hourly wage employees. The bill defines a "covenant not to compete" as an agreement restricting employees from working for competitors after leaving a job, but states such agreements are void for hourly workers. Key provisions make these clauses unenforceable in employment contracts where the employee is paid hourly wages, regardless of time or geographic limits. This directly affects hourly workers in industries like retail, hospitality, and food service who might face such restrictions. The bill does not apply to salaried employees or other employment arrangements.
Bill status
in committee
1 of 4 stages cleared
Introduction
Feb 2025
Committee Review
Floor Vote
Governor
Introduced Feb 17, 2025
Last action May 15, 2025
Floor votes
How they voted
No floor votes recorded yet.
Full legislative history
Actions timeline
Total actions
3
Key actions
0
Committee
1
May 15, 2025
Committee
Referred: Emerging Issues(H)
lower
Feb 17, 2025
Introduced
Introduced and Read First Time (H)
lower
1 primary · 0 co-sponsors
Sponsors
Role
Legislator
Party
State
District
P
Betsy Fogle
DDemocratic
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