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Bill > HB1034


TN HB1034

AN ACT to amend Tennessee Code Annotated, Title 50; Title 63 and Title 68, relative to covenants not to compete.


summary

Introduced
02/05/2025
In Committee
02/10/2025
Crossed Over
Passed
Dead

Introduced Session

114th General Assembly

Bill Summary

As introduced, prohibits the enforcement of any restriction on the right of an employee or contractor to practice the employee's or contractor's profession upon termination or conclusion of the employment or contractual relationship. - Amends TCA Title 50; Title 63 and Title 68.

AI Summary

This bill aims to broadly prohibit non-compete agreements in Tennessee by rendering restrictions on an employee's or contractor's right to practice their profession after terminating employment void and unenforceable, with a planned implementation date of July 1, 2025. The legislation systematically removes references to a previous section of law (§63-1-148) that previously allowed certain non-compete restrictions across multiple sections of Tennessee Code related to professional licensing and healthcare. By deleting and modifying these references, the bill effectively invalidates most contractual provisions that prevent workers from pursuing their profession or trade after leaving a job. The bill will apply to contracts entered into or amended on or after July 1, 2025, giving employers and employees advance notice of the change. This represents a significant shift in Tennessee's employment law that aims to increase worker mobility and prevent employers from restricting employees' ability to seek employment in their chosen field after leaving a job.

Committee Categories

Business and Industry

Sponsors (2)

Last Action

Action Def. in s/c Banking and Consumer Affairs Subcommittee to Second Calendar of 2026 (on 03/19/2025)

bill text


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