SB1218
L&E; covenants not to compete prohibited, low-wage employees, exceptions, civil penalty.
Status:
Enacted
Latest Action:
March 24, 2025
Acts of Assembly Chapter text (CHAP0585)
Chief Patron:
Richard Stuart (R)
Session:
2025 Regular Session
Summary
As Passed House of Origin. Labor and employment; covenants not to compete prohibited; exceptions; civil penalty.
Provides that, for the purposes of the prohibition in existing law against an employer entering into, enforcing, or threatening to enforce a covenant not to compete with any low-wage employee, 'low-wage employee' includes an employee who, regardless of average weekly earnings, is entitled to overtime compensation under federal law for ... (More) any hours worked in excess of 40 hours in any one workweek. Any employer that violates the bill's provisions is subject to a civil penalty in existing law of $10,000 for each violation. (Less)-
Bill History
- 01/08/2025 - Senate: Prefiled and ordered printed; Offered 01-08-2025 25103924D
- 01/08/2025 - Senate: Referred to Committee on Commerce and Labor
- 01/27/2025 - Senate: Reported from Commerce and Labor with substitute (15-Y 0-N)
- 01/27/2025 - Senate: Committee substitute printed 25106097D-S1
- 01/29/2025 - Senate: Rules suspended
- 01/29/2025 - Senate: Constitutional reading dispensed (on 1st reading) (38-Y 0-N)
- 01/29/2025 - Senate: Passed by for the day
- 01/30/2025 - Senate: Read second time
- 01/30/2025 - Senate: Reading of substitute waived
- 01/30/2025 - Senate: Commerce and Labor Substitute agreed to
- 01/30/2025 - Senate: Engrossed by Senate - committee substitute
- 01/30/2025 - Senate: Rules suspended
- 01/30/2025 - Senate: Constitutional reading dispensed (on 3rd reading) (39-Y 1-N)
- 01/30/2025 - Senate: Passed Senate (40-Y 0-N)
- 02/03/2025 - House: Placed on Calendar
- 02/03/2025 - House: Read first time
- 02/03/2025 - House: Referred to Committee on Labor and Commerce
- 02/04/2025 - House: Assigned L & C sub: Subcommittee #2
- 02/10/2025 - House: Placed on Labor and Commerce Agenda
- 02/11/2025 - House: Subcommittee recommends reporting (8-Y 0-N)
- 02/12/2025 - Senate: Fiscal Impact Statement from Department of Planning and Budget (SB1218)
- 02/12/2025 - House: Placed on Labor and Commerce Agenda
- 02/13/2025 - House: Reported from Labor and Commerce (12-Y 10-N)
- 02/17/2025 - House: Read second time
- 02/18/2025 - House: Read third time
- 02/18/2025 - House: Passed House (49-Y 47-N) Close Floor Vote
- 02/20/2025 - Senate: Enrolled
- 02/20/2025 - Senate: Bill text as passed Senate and House (SB1218ER)
- 02/20/2025 - House: Signed by Speaker
- 02/23/2025 - Senate: Signed by President
- 02/24/2025 - Senate: Fiscal Impact Statement from Department of Planning and Budget (SB1218)
- 03/05/2025 - Senate: Enrolled Bill Communicated to Governor on March 5, 2025
- 03/05/2025 - Governor's Action Deadline 11:59 p.m., March 24, 2025
- 03/24/2025 - Approved by Governor-Chapter 585 (Effective 07/01/25)
- 03/24/2025 - Acts of Assembly Chapter text (CHAP0585)
