Bill > S4386

Introduced Session

This bill prohibits non-compete clauses and certain other agreements between an employer and employee that restrict employment choices after the conclusion of the employee's employment with the employer. The bill makes it illegal for an employer to enter into, attempt to enter into, present to an employee, past employee, or prospective employee as a term of employment, or attempt to enforce, or represent that the employee is subject to, any contract that restrains an employee from engaging in a lawful profession, trade, or business of any kind after the conclusion of the employee's employment with the employer, including, but not limited to: 1. a non-compete clause; 2. a term that requires a debtor to pay for a debt if the debtor's employment or work relationship with the employer is terminated; or 3. any term that imposes any penalties, fees, or costs to an employee for terminating the employment relationship, including employment promissory notes, replacement hire fees, retraining fees, reimbursement for immigration or visa-related costs, bondage fees, liquidated damages, lost goodwill, or lost profit. Every employer is required to: 1. notify, not more than 30 days after the effective date of the bill, every current employee that any non-compete clause or other agreement which restrains an employee from engaging in a lawful profession, trade, or business of any kind after the conclusion of employment, or which in any way violates the provisions of the bill, including any clause or agreement which was entered into or in effect on or before the effective date of the bill, is against public policy, void and unenforceable against the employee; and 2. notify every past employee with whom the employer has contact, and with whom the employer had entered into a non-compete clause, that the clause is void and unenforceable, within 30 days after the bill's effective date, and immediately whenever the employee requests information about the clause, or is subject to an action based on or related to the clause. The bill also designates no-poach agreements between employers and employees, including a no-poach agreements entered into or in effect on or before the effective date of the bill, to be contrary to public policy and void and unenforceable. The bill permits an employee who is subject to a non-compete clause or a no-poach agreement, or who otherwise suffers harm because of a violation of the provisions of the bill, or a representative of the employee, to bring a civil action on behalf of the employee, other persons similarly situated, or both, in a court of competent jurisdiction for actual damages, punitive damages of not more than $5,000, reasonable costs and attorney's fees. The bill also authorizes the Attorney General or the Commissioner of Labor and Workforce Development to accept complaints and bring actions to enforce the bill.

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Joe Cryan (D)*, 

Introduced in the Senate, Referred to Senate Labor Committee (on 05/19/2025)

Official Document