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As we turn the corner into September, with fall right around the corner, activity is starting to ramp up with Vermont legislators. We are entering the second year of the 2025 biennium, and bills from last year are waiting on legislators’ desks while new ones are being drafted. A typical biennium produces over 1,400 bills, from which lawmakers must select a small group of “must-pass” items—such as the capital budget and transportation bill—along with a limited number of other legislative priorities. During the fall, legislators work with stakeholders to craft bills that reflect their priorities.
One policy area where ABC NH/VT will be engaged is the proposed prohibition of noncompete agreements. Business organizations generally oppose such prohibitions, and ABC NH/VT will look to its members to help shape a specific policy position on any legislation that emerges.
Employers cite different reasons for using a noncompete clause or agreement during hiring. Some want to protect proprietary intellectual property; others aim to safeguard client and supplier lists. Employers may also worry that investments in workforce training could lead to employees “walking across the street” to a competitor. In some cases, franchise agreements include noncompete clauses.
Labor advocates regularly argue that noncompete agreements are harmful to workers. They view them as tools employers use to suppress wages by limiting a worker’s ability to change jobs and thus avoid wage competition.
In Vermont, construction companies are facing a labor shortage. This generally requires employers to offer competitive wages and benefits to attract the right talent. Employers also recognize that asking an employee to sign a noncompete without a clear rationale could be a disadvantage in the marketplace. There are, however, circumstances in which a construction employer and employee might enter into a noncompete—such as in connection with employer-sponsored advancement training or other proprietary functions.
ABC NH/VT will participate in a stakeholder group on noncompetes throughout the fall in preparation for the legislative session. Please reach out to Vermont’s Regional Director, Matt, at matt@abcnhvt.org to share any stories or insights you may have on this topic. Also be on the lookout for invitations to the Government Affairs Committee, which will resume in a few weeks to prepare for the 2026 legislative session and election season.