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Read. Follow. Verify.North Carolina bans non-competes for workers earning under $75,000 and orders occupational licensing review
Last action · March 5, 2025: Ref to the Com on Commerce and Economic Development, if favorable, Judiciary 2, if favorable, Rules, Calendar, and Operations of the House (House action)Sponsors: Bryan Cohn and 29 others
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What This Bill Would Do
North Carolina prohibits employers from entering into, enforcing, or threatening to enforce s for employees earning less than $75,000 per year, effective July 1, 2025. The legislation also repeals restrictions on labor organizing and collective bargaining, and directs the to conduct a comprehensive study of state-issued occupational licenses.
Workers earning under $75,000 gain the legal right to move freely between competing employers without contractual restrictions, while employers face potential civil liability for enforcing prohibited non-competes. Additionally, individuals pursuing licensed trades face a multi-year state review aimed at identifying unnecessary certification barriers and reducing fees or educational requirements.
- The Legislative Research Commission is a joint legislative service agency of the North Carolina General Assembly that studies assigned topics between legislative sessions and recommends policy changes. context
- Non-compete clauses are contractual terms designed to prevent employees from entering into competing employment after leaving a job, a practice increasingly scrutinized by state and federal regulators. context
Who It Would Affect
Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.
Employees earning less than $75,000 per year
Covered workers gain legal protection against non-compete and no-poach agreements and the ability to change employers without contractual restraint.
Employers in North Carolina
Employers are prohibited from utilizing or enforcing non-compete agreements for workers earning under $75,000 and face potential civil liability and Attorney General enforcement for violations.
Occupational licensing boards
Boards regulating licensed professions will be subject to a comprehensive review by the Legislative Research Commission evaluating their licensing requirements, fees, and training standards.
Key Facts
You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.
Frequently Asked Questions
Does the non-compete ban apply to all workers in North Carolina?
What happens to non-compete agreements signed before July 1, 2025?
What is the role of the Legislative Research Commission under this bill?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
Currently in committee. The next step in the legislative lifecycle is Floor Vote.
Procedural history
3 actions- Mar 5, 2025HouseRef to the Com on Commerce and Economic Development, if favorable, Judiciary 2, if favorable, Rules, Calendar, and Operations of the House
- Mar 5, 2025HousePassed 1st Reading
- Mar 3, 2025HouseIntroducedFiled
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Show 25 more sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Prohibition of Low-Wage Non-Competes
The bill establishes a clear income threshold ($75,000) below which non-compete and no-poach agreements are entirely void and enforceable with civil penalties.
Phased Legislative Reporting for Licensing Reform
The Legislative Research Commission is mandated to report in a phased timeline, providing an interim report for the 2026 session and a final report requiring a public hearing for the 2027 General Assembly.
Connected Entities
Sources
www.ncleg.gov
Analysis Score
0–100- Significance85How much this matters to a regular citizen
- Controversy75Intensity of disagreement among stakeholders
- Entertainment10Compellingness for a non-policy-wonk reader
- Buzz60Current news / social attention level
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