Bill Summaries: H269 (2025-2026 Session)

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  • Summary date: Mar 3 2025 - View summary

    Titles the act as the "Workforce Freedom and Protection Act."

    Repeals Articles 10 (Declaration of Policy as to Labor Organizations) and 12 (Units of Government and Labor Unions, Trade Unions, and Labor Organizations, and Public Employee Strikes) of GS Chapter 95.

    Adds new Article 24, including the following. Enacts new GS 95-275, which provides as follows. Makes it the public policy of this State that any contract that restrains anyone from exercising a lawful profession, trade, or business of any kind is to that extent void and unenforceable, except as provided below. Prohibits an employer in NC from: (1) entering into a non-compete agreement with an employee; (2) requiring an employee to enter into a non-compete agreement as a condition of employment; (3) enforcing or attempting to enforce a non-compete agreement; (4) threatening to enforce a non-compete agreement; and (5) in the case of a franchise operator, entering into an agreement that restricts an employee from moving between locations. Defines an employee as an employee providing labor or services to another for pay of less than $75,000 per year. Allows a person injured by a violation of this statute to bring a civil action to recover actual damages, reasonable attorneys' fees and costs, and any other relief the court deems appropriate. Allows that the Attorney General may investigate violations and bring an action to enforce this statute. Sets out provisions governing choice of law and venue. Also defines non-compete agreement and no-poach agreement. Effective July 1, 2025, and applies to all non-compete agreements entered into on or after that date. Specifies that this does not apply to non-compete agreements entered into prior to the effective date, except that any attempt to enforce such an agreement after the effective date must comply with GS 95-275.

    Requires the Legislative Research Commission (LRC) to review all occupations and professions in North Carolina that require a State-issued license with the purpose of identifying any occupational licensing requirements that are unnecessary or overly restrictive and to recommend changes to increase workforce freedom while protecting public health and safety. Requires the study to examine and evaluate, at least, the specified criteria for each licensed profession relating to public safety rationale, necessity and alternatives, impact on employment and economic opportunity, effects on consumers and competition, national comparison and best practices, regulatory overlap or redundancy, and outcomes and accountability. Requires the study to emphasize the following priority industries: construction trades, cosmetology, health-related professions, personal care services, and other fields where occupational licensing requirements may disproportionately impact small business creation and workforce entry. Requires engaging five specified stakeholders in the study. Requires the LRC to hold at least three public hearings, one in each geographic region of the State to gather public input and recommendations. Requires a public comment period of at least 90 days. Requires the LRC to consider and incorporate reforms implemented in other states that have successfully reduced licensing burdens while maintaining consumer protection standards. Requires that the LRC shall submit an interim report on the results of the study to the 2025 General Assembly when it reconvenes for the 2026 session and a final report to the 2027 General Assembly that requires specified information. Requires the NCGA to hold a public hearing on the LRC's recommendations within six months of receiving the final report.