Texas House Bill HB2960

Texas 2019 - 86th Regular

Caption

Relating to a prohibition against covenants not to compete for certain low-wage employees.

Impact

If enacted, HB 2960 would amend the Business and Commerce Code of Texas to specifically void any non-compete agreements for low-wage employees. This amendment aims to create a more equitable labor environment by allowing low-wage workers the freedom to seek higher-paying employment opportunities without the fear of legal repercussions from their former employers. Supporters of the bill advocate that this change will improve job mobility and economic prospects for low-wage earners, fostering a more dynamic labor market and potentially reducing unemployment among this demographic.

Summary

House Bill 2960 is a proposed piece of legislation aimed at protecting low-wage employees in Texas by prohibiting covenants not to compete for certain workers. Specifically, the bill targets employees that earn at or below the federal minimum wage or $15.00 an hour. Under this bill, employers would be forbidden from imposing such restrictive agreements, which typically prevent workers from accepting employment with competing businesses after leaving their current jobs. The legislation seeks to reduce barriers that low-wage workers face in seeking employment and emphasizes the fair treatment of employees who may not have the negotiating power necessary to resist such clauses.

Contention

While proponents of HB 2960 argue that prohibiting non-compete agreements for low-wage workers is a necessary step toward labor fairness, there may be pushback from businesses concerned about the implications of their ability to protect trade secrets and maintain competitive advantages. Opponents might argue that non-compete clauses serve an important function in certain industries, especially for high-level positions where sensitive information is at stake. Thus, the debate surrounding HB 2960 encapsulates broader discussions about workers' rights versus business protections within the Texas legislative landscape.