An act relating to fair employment practices
What changed between versions
New section 495q prohibits non-compete agreements with nonexempt employees (as defined under the Fair Labor Standards Act) as presumptively coercive and a restraint on trade, unless part of a collective bargaining agreement. Applies to agreements entered into on or after July 1, 2026.
New provisions void and unenforceable any contract term that restricts a health care provider's right to practice in a geographic area after separation, limits the provider's ability to notify former patients of a change in employment, imposes non-disparagement clauses, or requires out-of-state litigation. An exception exists for restrictions on providers who contract with third-party companies for nonclinical business support services.
Expanded the definition of 'crime victim' to include survivors of domestic violence, sexual assault, or stalking who have supporting documentation from a court, law enforcement agency, assistance program, professional counselor, or through self-attestation requiring no further corroboration unless otherwise mandated by law. Also added definitions for 'domestic violence,' 'sexual assault,' and 'stalking.'
Added an employee definition to section 471 requiring continuous employment by the same employer for one year at an average of at least 30 hours per week, with specific carve-outs for airline flight crew employees and full-time teachers under federal regulations.
New section 3c requires the Commissioner of Corrections to meet with Vermont State Employees' Association representatives to develop a proposal governing permissible and impermissible solicitation in parking lots at Department of Corrections facilities, for consideration by the Secretary of Administration by January 1, 2027.
Anti-retaliation provisions added: employers may not discharge or retaliate against employees who exercise rights under the new non-compete and health care provider sections, with existing penalty and enforcement provisions applying.
The bill header was updated to reflect passage by both chambers, and the committee referral name was corrected from 'Econ. Dev., Hous' to 'Econ. Dev., Housing and General Affairs.' The effective date remains July 1, 2026.