North Carolina HB 269: Workforce Freedom and Protection Act.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 269

Short Title: Workforce Freedom and Protection Act. (Public)
Sponsors: Representatives Cohn, Crawford, K. Brown, and Logan (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Commerce and Economic Development, if favorable, Judiciary 2, if favorable,
Rules, Calendar, and Operations of the House
March 5, 2025
*H269-v-1*
A BILL TO BE ENTITLED 1
AN ACT REMOVING BARRIERS TO JOB MOBILITY, EMPOWERING WORKERS TO 2
NEGOTIATE BETTER WAGES, AND FOSTERING A FAIRER LABOR MARKET BY 3
BANNING EXPLOITATIVE EMPLOYMENT PRACTICES AND AUTHORIZING THE 4
LEGISLATIVE RESEARCH COMMISSION TO STUDY STREAMLINING 5
OCCUPATIONAL LICENSING IN NORTH CAROLINA. 6
The General Assembly of North Carolina enacts: 7
SECTION 1.1. Title. – This act shall be known and may be cited as the "Workforce 8
Freedom and Protection Act." 9
SECTION 2.1. Repeal Restrictions on Labor Organizing and Collective Bargaining. 10
– Articles 10 and 12 of Chapter 95 of the General Statutes are repealed. 11
SECTION 3.1.(a) Non-Competes Prohibited. – Chapter 95 of the General Statutes 12
is amended by adding a new Article to read: 13
"Article 24. 14
"Workplace Freedom. 15
"§ 95-275. Contracts restraining lawful work prohibited. 16
(a) Definitions. – The following definitions apply in this Article: 17
(1) Employee. – An employee providing labor or services to another for pay of 18
less than seventy–five thousand dollars ($75,000) per year. 19
(2) Non-compete agreement. – An agreement between an employer and an 20
employee that restricts the employee, after termination of the employment, 21
from doing one or more of the following: 22
a. Working for another employer for a specified period of time. 23
b. Working in a specified geographical area. 24
c. Engaging in work activities similar to those performed for the 25
employer. 26
(3) No-poach agreement. – An agreement between employers that restricts one 27
employer from soliciting, recruiting, hiring, or otherwise competing for 28
employees employed by another employer. 29
(b) Policy. – It is the public policy of this State that any contract by which anyone is 30
restrained from exercising a lawful profession, trade, or business of any kind is to that extent void 31
and unenforceable, except as provided in subsection (c) of this section. 32
(c) Prohibition. – No employer in this State shall do any of the following: 33
(1) Enter into a non-compete agreement with an employee. 34

General Assembly Of North Carolina Session 2025
Page 2 House Bill 269-First Edition
(2) Require an employee to enter into a non-compete agreement as a condition of 1
employment. 2
(3) Enforce or attempt to enforce a non-compete agreement. 3
(4) Threaten to enforce a non-compete agreement. 4
(5) In the case of a franchise operator, enter into an agreement that restricts an 5
employee from moving between locations. 6
(d) Enforcement. – Any person injured by a violation of this section may bring a civil 7
action to recover actual damages, reasonable attorneys' fees and costs, and any other relief the 8
court deems appropriate. The Attorney General may investigate violations and bring an action to 9
enforce this section. 10
(e) Choice of Law and Venue. – No employer may require an employee who primarily 11
resides or works in North Carolina to agree to a contract provision that would (i) require the 12
employee to adjudicate outside of North Carolina a claim arising in this State or (ii) deprive the 13
employee of the protection of North Carolina law for a claim arising in this State. Any such 14
provision is void and unenforceable." 15
SECTION 3.1.(b) Effective Date. – This section becomes effective July 1, 2025, and 16
applies to all non-compete agreements entered into on or after that date. This act does not apply 17
to non-compete agreements entered into prior to the effective date, except that any attempt to 18
enforce such an agreement after the effective date must comply with G.S. 95-275, as enacted by 19
this act. 20
SECTION 4.1.(a) LRC Study. – The Legislative Research Commission (LRC) shall 21
conduct a comprehensive review of all occupations and professions in North Carolina that require 22
a State-issued license. The purpose of this study is to identify any occupational licensing 23
requirements that are unnecessary or overly restrictive and to recommend changes to increase 24
workforce freedom while protecting public health and safety. For purposes of this section, 25
"occupational licensing board" has the same meaning as in G.S. 93B-1(2), and "licensed 26
profession" means any occupation or profession for which an individual is required by law to 27
obtain a license, certification, or registration from an occupational licensing board or other State 28
agency. 29
SECTION 4.1.(b) Scope. – The study conducted by the LRC under this section shall 30
examine and evaluate, at a minimum, the following criteria fo