HB949
Covenants not to compete; exceptions, civil penalty.
Status:
In House
Latest Action:
Feb. 3, 2026
House: Continued to next session in Labor and Commerce (Voice Vote)
Chief Patron:
Alfonso Lopez (D)
Session:
2026 Regular Session
Summary
As Introduced. Covenants not to compete; exceptions; civil penalty.
Prohibits an employer from entering into, enforcing, or threatening to enforce a covenant not to compete with employees who perform key duties of the employer's enterprise or customarily and regularly solicit customers or make sales or contracts for the employer. Under the bill, certain employees are permitted to enter agreements ... (More) to refrain from soliciting business from the employer for a stated period of time following termination. The penalty provisions in current law for covenants not to compete for low-wage employees shall apply to a violation of the provisions of the bill. The provisions of the bill apply to contracts entered into, amended, or renewed on or after July 1, 2026. (Less)-
Bill History
- 01/13/2026 - House: Prefiled and ordered printed; Offered 01-14-2026 26102467D
- 01/13/2026 - House: Referred to Committee on Labor and Commerce
- 01/22/2026 - House: Assigned HCL sub: Subcommittee #2
- 01/28/2026 - House: Placed on Labor and Commerce Agenda
- 01/29/2026 - House: Subcommittee recommends continuing to (Voice Vote)
- 01/30/2026 - House: Placed on Labor and Commerce Agenda
- 02/03/2026 - House: Continued to next session in Labor and Commerce (Voice Vote)
