An act relating to agreements not to compete

Vermont's H 205 bill prohibits most noncompete agreements that restrict franchisees from operating their businesses after leaving a franchisor or employees from competing after leaving a job. It exempts agreements protecting trade secrets, reasonable nonsolicitation agreements (like preventing employee poaching), and noncompetes for employees earning $100,000+ annually (with a 3-day job offer notice requirement). The bill requires franchisors and employers to notify affected individuals that existing noncompete clauses are void and unenforceable. It takes effect on July 1, 2025, with specific exceptions for business sales, dissolutions, and severance agreements containing reasonable time, geographic, and scope limits.