The Vermont Legislature kicked off 2019 with bill H.1, seeking
to ban non-competes in the Green Mountain State. The new bill has
been filed by Martin LaLonde, who promulgated an identical bill
last January. The 2018 bill was read and referred to the Committee
on Commerce and Economic Development and never made further
progress. Rep. LaLonde has a new co-sponsor in 2019, Rep. Annmarie
Christensen.
The bill, as drafted, seeks to prohibit all non-compete
agreements in the employment context. There are three limited
exceptions allowing for parties to enter into an agreement not to
compete with a business or similarly restrain a person from
engaging a profession, business, or trade, where the sale of a
business or dissolution of a partnership or limited liability
company is involved. The bill specifically notes that it does not
"prohibit an agreement that prohibits the disclosure of trade
secrets . . . ."
