SB423: relative to noncompete clauses for low-wage employees.

SB 423 - AS INTRODUCED

2018 SESSION

18-2843

04/01

SENATE BILL 423

AN ACT relative to noncompete clauses for low-wage employees.

SPONSORS: Sen. Watters, Dist 4; Sen. Gannon, Dist 23; Sen. Cavanaugh, Dist 16; Sen. D'Allesandro, Dist 20; Sen. Feltes, Dist 15; Sen. Fuller Clark, Dist 21; Sen. Hennessey, Dist 5; Sen. Kahn, Dist 10; Sen. Lasky, Dist 13; Sen. Soucy, Dist 18; Sen. Woodburn, Dist 1; Rep. Conley, Straf. 13; Rep. Cahill, Rock. 17

COMMITTEE: Commerce

ANALYSIS

This bill prohibits an employer from requiring an employee to enter a noncompete agreement.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

18-2843

04/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Eighteen

AN ACT relative to noncompete clauses for low-wage employees.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Section; Protective Legislation; Noncompete Agreements for Low-Wage Employees. Amend RSA 275 by inserting after section 70 the following new section:

275:70-a Noncompete Agreements for Low-Wage Employees.

I. In this section:

(a) "Employer" shall have the same meaning as in RSA 279:1, X. "Employer" shall not include employees of governmental or quasi-governmental bodies.

(b) "Low-wage employee" means an employee who earns the greater of:

(1) The hourly rate equal to the minimum wage required by the applicable federal minimum wage law; or

(2) $15.00 per hour.

(c) "Noncompete agreement" means an agreement between an employer and a low-wage employee that restricts such low-wage employee from performing:

(1) Work for another employer for a specified period of time;

(2) Work in a specified geographical area; or

(3) Work for another employer that is similar to such low-wage employee's work for the employer who is a party to the agreement; and that is entered into after the effective date of this section.

II.(a) No employer shall require a low-wage employee to enter into a noncompete agreement.

(b) A noncompete agreement entered into between an employer and a low-wage employee shall be void and enforceable.

2 Effective Date. This act shall take effect 60 days after its passage.