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SF 380

A bill for an act relating to prohibitions on noncompete covenants involving nurses and including applicability provisions.

2025-2026 Regular Session Introduced by Molly Donahue

SF 380 prohibits noncompete agreements for nurses, boosting their job opportunities and strengthening the healthcare workforce, enhancing patient care access.

Subcommittee: Driscoll, Taylor, and Townsend.
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Bill Summary · SF 380

Summary of SF 380: Prohibitions on Noncompete Covenants Involving Nurses

Bill Number: SF 380
Introduced: February 19, 2025
Status: Subcommittee: Driscoll, Taylor, and Townsend
Classification: Bill
Subject Areas: Commercial Law, Labor and Employment, Nursing

Purpose and Intent

SF 380 aims to prohibit noncompete covenants specifically for nurses and advanced registered nurse practitioners. The bill seeks to enhance employment opportunities for these healthcare professionals by eliminating restrictive agreements that limit their ability to work in their field after leaving an employer.

Key Provisions

  1. Definition of Noncompete Covenant:

    • A noncompete covenant is defined as an agreement that restricts an employee from:
      • Working for another employer for a specific time period.
      • Working in a specified geographical area.
      • Engaging in similar work for another employer that competes with the original employer.

  2. Exclusions:

    • The bill clarifies that noncompete covenants do not include agreements that impose adverse financial consequences solely for engaging in competitive activities after employment ends.

  3. Employee Definition:

    • The bill specifically applies to individuals licensed as registered nurses or advanced registered nurse practitioners under relevant state chapters.

  4. Earnings Definition:

    • The bill outlines what constitutes "earnings," including salary, bonuses, commissions, and other forms of taxable compensation.

Impact

  • Affected Parties:

    • The primary beneficiaries of this legislation will be registered nurses and advanced registered nurse practitioners, who will gain greater freedom to seek employment without the fear of legal repercussions from noncompete agreements.
    • Employers in the healthcare sector will need to adjust their employment contracts to comply with the new regulations.

  • Healthcare Workforce:

    • By removing barriers to employment, the bill aims to strengthen the nursing workforce, potentially improving patient care and access to healthcare services.

Procedural Aspects

  • Legislative Timeline:
    • The bill was introduced on February 19, 2025, and was referred to the Workforce Committee.
    • A subcommittee consisting of members Driscoll, Taylor, and Townsend was formed to review the bill on February 24, 2025.

Conclusion

SF 380 represents a significant shift in labor law as it pertains to healthcare professionals, particularly nurses. By prohibiting noncompete covenants, the bill aims to foster a more flexible and competitive job market for nursing professionals, ultimately benefiting the healthcare system as a whole.

Compiled from official sources — confirm details with the bill’s official record.

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