NC bill seeks to do away with non-compete agreements for lower-wage workers

Under House Bill 269, employers couldn't limit the mobility of departing employees who made less than $75,000 a year. The bill could greatly impact journalists and healthcare workers.

North Carolina state Rep. Bryan Cohn, a Granville County Democrat, attends a legislative session on Wednesday, Jan. 8, 2025.

A group of North Carolina House Democrats unveiled a bill this week that would do away with non-compete agreements for employees who make less than $75,000 a year.

Under House Bill 269, which was filed by Democratic state Rep. Bryan Cohn of Granville County, employers would be prohibited from compelling workers to agree to such limits on their future job prospects.

The bill would outlaw the use of non-compete agreements starting July 1, and any agreements made beforehand would be void and unenforceable.

“You can't hold employees hostage,” Cohn said. “That’s where market-based pay comes in. If the market changes, then companies need to examine their pay structure, their benefits or other incentives to keep their employees engaged. That has been the gold standard for many decades.”

Support and resistance

While similar bills have been unveiled in the past in North Carolina, Cohn said he believes his is the first to set a blanket prohibition on non-competes at a specific income threshold.

Twenty-two other House Democrats had signed onto the proposal, as of Wednesday afternoon. While Cohn said he’s not yet reached out to his GOP colleagues, House Speaker Destin Hall on Wednesday embraced the idea.