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NC H973
Bill
Status
4/10/2025
Primary Sponsor
Tim Longest
Click for details
AI Summary
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Employers must provide workers with proposed restrictive employment agreements at least 14 days before employment begins or compensation increases, along with a standardized notice from the NC Department of Labor explaining worker rights
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Noncompete agreements are limited to 1 year for protecting trade secrets or customer relationships, or 5 years when connected to the sale or creation of a business where the worker is a substantial owner
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Restrictive agreements (except confidentiality and training-repayment provisions) are prohibited for workers earning below the state's annual mean wage and unenforceable if the worker is terminated without cause or resigns due to employer misconduct
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No-business and no-recruit agreements are capped at 6 months, nonsolicitation agreements at 1 year, and training-repayment agreements at 2 years with prorated repayment requirements
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Employers face civil penalties up to $5,000 per worker per agreement for knowingly entering prohibited agreements, and courts are barred from modifying unenforceable agreements to make them valid
Legislative Description
Uniform Restrictive Employment Agreement Act
Public
Last Action
Ref To Com On Rules, Calendar, and Operations of the House
4/14/2025