Bill > H973

This bill establishes the Uniform Restrictive Employment Agreement Act, which creates comprehensive regulations for various types of employment agreements that restrict workers' future employment opportunities. The act defines and provides specific rules for different types of restrictive agreements, including noncompete, confidentiality, no-business, nonsolicitation, no-recruit, payment-for-competition, and training-repayment agreements. Key provisions include requiring employers to provide workers with a 14-day notice period before implementing such agreements, prohibiting these agreements for low-wage workers, and establishing that these agreements must be reasonable and narrowly tailored. The bill sets specific limitations on the duration and scope of these agreements, such as limiting noncompete agreements to no more than five years in some cases and one year in others. Employers are required to provide clear, written agreements and face potential statutory damages of up to $5,000 per worker for violations. The act also prevents employers from using choice of law or venue provisions that would circumvent these protections, and it gives workers the right to seek declaratory judgments about the enforceability of such agreements. Notably, the act becomes effective on January 1, 2026, and aims to provide more protection and clarity for workers regarding restrictive employment agreements.

Government Affairs

https://www.ncleg.gov/BillLookUp/2025/H973