Nebraska LB 961: Prohibit noncompete agreements for lower-wage employees

Bill Text

LEGISLATURE OF NEBRASKA
ONE HUNDRED EIGHTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 961

Introduced by Dungan, 26; Hunt, 8.
Read first time January 04, 2024
Committee: Business and Labor
A BILL FOR AN ACT relating to labor; to prohibit noncompete agreements1
for lower-wage employees as prescribed; to define terms; and to2
provide for applicability.3
Be it enacted by the people of the State of Nebraska,4
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Section 1. (1) For purposes of this section:1
(a) Employer means any individual, partnership, limited liability2
company, association, corporation, business trust, legal representative,3
or organized group of persons employing one or more employees at any one4
time, except that the term does not include the United States, the state,5
or any political subdivision thereof;6
(b) Lower-wage employee means an employee who earns no more than one7
hundred thousand dollars per year; and8
(c)(i) Noncompete agreement means an agreement between an employer9
and an employee that restricts such employee from performing (A) any work10
for another employer for a specified period of time, (B) any work for11
another employer within a specified geographical area, or (C) any work12
for another employer that is similar to such employee's work for the13
employer included as a party to the agreement.14
(ii) Noncompete agreement includes any stand-alone agreement or any15
provision within an employment contract or similar agreement.16
(2) No employer shall enter into a noncompete agreement with a17
lower-wage employee.18
(3) A noncompete agreement entered into between an employer and a19
lower-wage employee is against the public policy of this state and is20
void and unenforceable.21
(4) This section applies to noncompete agreements entered into on or22
after the effective date of this act.23
LB961
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2024
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