Establishes standards in regards to covenants not to compete
HB 3427 establishes that non-compete agreements cannot be enforced against hourly wage employees. The bill specifically voids any covenant not to compete (a clause restricting work with competitors after leaving a job) for employees paid hourly wages, making such agreements unenforceable. This directly affects hourly workers in employment contracts, while leaving non-compete terms for salaried employees unaffected. The law targets a common practice that often limits job mobility for lower-wage workers.
Bill status
in committee
1 of 4 stages cleared
Introduction
Feb 2026
Committee Review
Floor Vote
Governor
Introduced Feb 25, 2026
Last action May 15, 2026
Floor votes
How they voted
No floor votes recorded yet.
Full legislative history
Actions timeline
Total actions
3
Key actions
0
Committee
1
May 15, 2026
Committee
Referred: Emerging Issues(H)
lower
Feb 25, 2026
Introduced
Introduced and Read First Time (H)
lower
1 primary · 0 co-sponsors
Sponsors
Role
Legislator
Party
State
District
P
Betsy Fogle
DDemocratic
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