Bill > SB0995

This bill aims to restrict the use of non-compete agreements in Tennessee by making most contractual limitations on an employee's or contractor's ability to practice their profession after ending an employment or contractual relationship void and unenforceable. Specifically, the bill eliminates Section 63-1-148 from Tennessee Code and removes references to this section in multiple other code sections related to professional practice, effectively invalidating most non-compete restrictions across various professional sectors. The bill does maintain a potential exception noted in Section 63-6-204(f)(2), which suggests there might be limited circumstances where restrictions could still be permissible. The legislation is set to take effect on July 1, 2025, and will apply to contracts entered into or amended on or after that date, giving employers and professionals advance notice of the coming changes. By broadly prohibiting these restrictive covenants, the bill aims to enhance worker mobility and prevent employers from unduly constraining professionals' ability to seek employment or practice their trade after leaving a job.

Business and Industry

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB0995&ga=114