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SB 251Introduced; filed Nov. 9, 202690th Regular Session (2027)

Employers could not force low-wage Texas workers to sign non-compete agreements

What it does

SB 251 would stop employers from requiring some low-wage workers to sign non-compete agreements. It covers employees who earn no more than the greater of the federal minimum wage or $15 an hour. An employer could not make those workers agree to stay away from another employer for a set time, in a set area, or from taking similar work for another employer, and any such agreement would be void and unenforceable. The change would apply only to agreements signed on or after September 1, 2027.

What it means for your community

If you earn at or below that pay level, your boss could not lock you into a non-compete, so you could take a job with another employer and the agreement could not be enforced against you. City and county employers are not covered, because the bill's definition of employer leaves out public employers. Agreements you signed before September 1, 2027 would still be governed by the old law.

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Read the full bill on Texas Legislature Online

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