HB 949: Covenants not to compete; exceptions, civil penalty.
HB 949 status: Introduced — Continued from last session (updated Jul 21, 2026).
What this bill does
Overall score
Bill summary
OfficialCovenants not to compete; exceptions; civil penalty. Prohibits an employer from entering into, enforcing, or threatening to enforce a covenant not to compete with employees who perform key duties of the employer's enterprise or customarily and regularly solicit customers or make sales or contracts for the employer. Und...
Key analysis
Impact analysis
Environment
Benefits
- No direct impact on environmental regulation
Risks
- No direct impact on environmental regulation
Economy
Benefits
- Increases labor mobility for employees
- Encourages competitive wage growth
Risks
- Potential loss of protection for employer trade secrets
- Compliance costs for businesses updating contract templates
Society
Benefits
- Reduces restrictive barriers to career changes
- Empowers workers with greater professional autonomy
Risks
- Potential disputes over non-solicitation clauses
How trustworthy & consequential it is
Source
OpenStates
Confidence
lowlow
Analysis status
OpenStates summary
Ambiguity in 'key duties' language may lead to litigation risk
Analysis based on summary abstract only
Where it stands
Introduced
CurrentContinued from last session
Committee
UpcomingFloor
UpcomingGovernor
UpcomingEnacted
UpcomingHow it affects your district
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