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H 205·VT·house

An act relating to agreements not to compete

FailedFiled Feb 12, 2025
Sponsor: Michael Marcotte (R)
Latest Action

Rep. Marcotte of Coventry moved to recommit the bill to the Committee on Commerce and Economic Development, which was agreed to

Mar 13, 2026

Summary

The bill makes any non‑compete clause in a franchise or employment contract void and unenforceable, and requires franchisors and employers to notify affected parties that such agreements are invalid. It allows certain non‑compete arrangements for business sales, partnership or LLC dissolutions, and severance agreements that meet reasonable limits, and it excludes employees earning $100,000 or more annually. The measure aims to protect workers and franchisees from restrictions on their ability to work after a separation.

AI-generated summary — may be incomplete or inaccurate. Verify against the official bill text.

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