Workforce Freedom and Protection Act.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 269

Short Title: Workforce Freedom and Protection Act. (Public)
Sponsors: Representatives Cohn, Crawford, K. Brown, and Logan (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Commerce and Economic Development, if favorable, Judiciary 2, if favorable,
Rules, Calendar, and Operations of the House
March 5, 2025
*H269-v-1*
A BILL TO BE ENTITLED 1
AN ACT REMOVING BARR IERS TO JOB MOBILITY , EMPOWERING WORKERS TO 2
NEGOTIATE BETTER WAGES, AND FOSTERING A FAIRER LABOR MARKET BY 3
BANNING EXPLOITATIVE EMPLOYMENT PRACTICES AND AUTHORIZING TH E 4
LEGISLATIVE RESEARCH COMMISSION TO STUDY STREAMLINING 5
OCCUPATIONAL LICENSING IN NORTH CAROLINA. 6
The General Assembly of North Carolina enacts: 7
SECTION 1.1. Title. – This act shall be known and may be cited as the "Workforce 8
Freedom and Protection Act." 9
SECTION 2.1. Repeal Restrictions on Labor Organizing and Collective Bargaining. 10
– Articles 10 and 12 of Chapter 95 of the General Statutes are repealed. 11
SECTION 3.1.(a) Non-Competes Prohibited. – Chapter 95 of the General Statutes 12
is amended by adding a new Article to read: 13
"Article 24. 14
"Workplace Freedom. 15
"§ 95-275. Contracts restraining lawful work prohibited. 16
(a) Definitions. – The following definitions apply in this Article: 17
(1) Employee. – An employee providing labor or services to another for pay of 18
less than seventy–five thousand dollars ($75,000) per year. 19
(2) Non-compete agreement. – An agreement between an employer and an 20
employee that restricts the employee, after termination of the employment, 21
from doing one or more of the following: 22
a. Working for another employer for a specified period of time. 23
b. Working in a specified geographical area. 24
c. Engaging in work activities similar to those performed for the 25
employer. 26
(3) No-poach agreement. – An agreement between employers that restricts one 27
employer from so liciting, recruiting, hiring, or otherwise competing for 28
employees employed by another employer. 29
(b) Policy. – It is the public policy of this State that any contract by which anyone is 30
restrained from exercising a lawful profession, trade, or business of any kind is to that extent void 31
and unenforceable, except as provided in subsection (c) of this section. 32
(c) Prohibition. – No employer in this State shall do any of the following: 33
(1) Enter into a non-compete agreement with an employee. 34
General Assembly Of North Carolina Session 2025
Page 2 House Bill 269-First Edition
(2) Require an employee to enter into a non-compete agreement as a condition of 1
employment. 2
(3) Enforce or attempt to enforce a non-compete agreement. 3
(4) Threaten to enforce a non-compete agreement. 4
(5) In the case of a franchise operator, enter into an agreement that restricts an 5
employee from moving between locations. 6
(d) Enforcement. – Any person injured by a violation of this section may bring a civil 7
action to recover actual damages, reasonable attorneys ' fees and costs, and any other relief the 8
court deems appropriate. The Attorney General may investigate violations and bring an action to 9
enforce this section. 10
(e) Choice of Law and Venue. – No employer may require an employee who primarily 11
resides or work s in North Carolina to agree to a contract provision that would (i) require the 12
employee to adjudicate outside of North Carolina a claim arising in this State or (ii) deprive the 13
employee of the protection of North Carolina law for a claim arising in this State. Any such 14
provision is void and unenforceable." 15
SECTION 3.1.(b) Effective Date. – This section becomes effective July 1, 2025, and 16
applies to all non-compete agreements entered into on or after that date. This act does not apply 17
to non-compete agreements entered into prior to the effective date, except that any attempt to 18
enforce such an agreement after the effective date must comply with G.S. 95-275, as enacted by 19
this act. 20
SECTION 4.1.(a) LRC Study. – The Legislative Research Commission (LRC) shall 21
conduct a comprehensive review of all occupations and professions in North Carolina that require 22
a State -issued license. The purpose of this study is to identify any occupational licensing 23
requirements that are unnecessary or overly restrictive and to re commend changes to increase 24
workforce freedom while protecting public health and safety. For purposes of this section, 25
"occupational licensing board" has the same meaning as in G.S. 93B-1(2), and "licensed 26
profession" means any occupation or profession for which an individual is required by law to 27
obtain a license, certification, or registration from an occupational licensing board or other State 28
agency. 29
SECTION 4.1.(b) Scope. – The study conducted by the LRC under this section shall 30
examine and evaluate, at a minimum, the following criteria for each licensed profession. The 31
study shall be conducted with an emphasis on the following priority industries: construction 32
trades, cosmetology, health -related professions, personal care services, and other fields wh ere 33
occupational licensing requirements may disproportionately impact small business creation and 34
workforce entry: 35
(1) Public safety rationale. – Whether the absence of a licensing requirement for 36
the profession would likely result in significant harm or danger to the public's 37
health, safety, or welfare. The review shall determine whether licensing is 38
justified by a demonstrable need to prevent tangible harm to consumers or the 39
public, with a focus on data-driven risk assessments. 40
(2) Necessity and alternat ives. – Whether existing licensure requirements 41
advance a meaningful public interest and are no more restrictive than 42
necessary to protect that interest. The study shall compare North Carolina's 43
licensing requirements to national standards and determine wh ether less 44
restrictive alternatives, such as certification, registration, bonding, or general 45
consumer protection laws, could adequately ensure public safety and welfare. 46
(3) Impact on employment and economic opportunity. – Assess the extent to 47
which licensing requirements create barriers to entry into the profession. The 48
study shall use quantitative benchmarks, for example average licensing fees 49
and educational requirements compared to national medians, to determine if 50
the cost, education, experience, or e xamination requirements unreasonably 51
General Assembly Of North Carolina Session 2025
House Bill 269-First Edition Page 3
impede individuals, particularly those with moderate or low incomes, from 1
pursuing lawful work without providing a proportional benefit to public 2
protection. 3
(4) Effects on consumers and competition. – The impact of the licensing 4
regulation on consumer costs, service availability, and market competition. 5
Any licensing rules that result in a ten percent (10%) or greater increase in 6
consumer prices or a fifteen percent (15%) or greater reduction in market 7
competition, based on a three-year review period, shall be flagged for potential 8
modification or repeal. 9
(5) National comparison and best practices. – How North Carolina's licensing 10
requirements for the profession compare to those in other states and to national 11
standards or model laws. Any licensing requirement that exceeds the national 12
average in cost, educational hours, or regulatory burden without clear 13
justification shall be included in the study's findings for possible reform. 14
(6) Regulatory overlap or redundancy. – Whether the profession is subject to 15
duplicative regulations or could be regulated under an umbrella with related 16
occupations. The study shall identify any overlap between boards or licenses 17
and evaluate the feasibility of consolidating boards or creating u niversal 18
licensing recognition for workers moving from out of state. 19
(7) Outcomes and accountability. – The evaluation of both the costs and benefits 20
of the licensing requirement shall be supported by historical data, including 21
review of disciplinary recor ds, consumer complaints, and enforcement 22
actions. The LRC shall recommend repeal or modification of any licenses that 23
have minimal documented public safety benefits but impose significant 24
barriers to employment. 25
SECTION 4.1.(c) Stakeholder Engagement. – The LRC shall engage stakeholders, 26
including the following: 27
(1) Occupational licensing boards representing the professions under review. 28
(2) Industry associations for the respective licensed professions. 29
(3) Consumer advocacy groups and workforce development organizations. 30
(4) Small business owners and entrepreneurs affected by licensing rules. 31
(5) Workers and trade associations representing licensed professionals. 32
The LRC shall conduct at least three public hearings, one in each geographic region 33
of the Sta te (Western, Central, and Eastern North Carolina), to gather public input and 34
recommendations. The LRC shall open a public comment period of at least 90 days during which 35
individuals, businesses, and organizations may submit feedback. Additionally, the LRC shall 36
consider and incorporate reforms implemented in other states that have successfully reduced 37
licensing burdens while maintaining consumer protection standards. 38
SECTION 4.1.(d) Report and Legislative Action. – The LRC shall submit an interim 39
report o n the results of the study authorized by this section, including any recommended 40
legislation, to the 2025 General Assembly when it reconvenes for the 2026 session. The LRC 41
shall submit a final report to the 2027 General Assembly, which shall do all of the following: 42
(1) Specifically identify any occupational licenses or licensing requirements 43
deemed unnecessary or overly restrictive, with supporting data. 44
(2) Include legislative proposals for modifying, consolidating, or eliminating 45
licensing requirements where justified. 46
(3) Recommend any administrative actions that could streamline licensing 47
processes without legislative changes. 48
(4) Include an implementation time line for any recommended reforms. 49
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The General Assembly shall be required to hold a public hea ring on the LRC's 1
recommendations within six months of receiving the final report, ensuring legislative 2
consideration and potential action on identified licensing reforms. 3
SECTION 4.1.(e) Effective Date. – This section is effective when it becomes law. 4
SECTION 5.1. Effective Dates. – Except as otherwise provided, this act is effective 5
when it becomes law. 6