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HB 2296

prohibited agreements; public works contracts

57th Legislature - Second Regular Session Introduced by Anna Abeytia and 11 co-sponsors

Arizona bill prohibits restrictive employment agreements (non-competes, non-solicitation) in public works contracts to protect worker mobility and labor competition on taxpayer-funded projects.

House First Reading.
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Bill Summary · HB 2296

Legislative bill overview

HB 2296 prohibits certain types of agreements in public works contracts in Arizona. The bill restricts contractors from entering into non-compete clauses, non-solicitation agreements, or other restrictive covenants that limit worker mobility after employment ends on publicly funded construction projects.

Why is this important

Public works contracts represent significant taxpayer investment, and restrictive employment agreements can limit job opportunities for construction workers and reduce labor market competition. This policy aims to balance contractor interests with worker freedom and the public interest in efficient labor markets for government-funded projects.

Potential points of contention

  • Business flexibility vs. worker protection: Contractors argue restrictive agreements protect trade secrets and client relationships; advocates counter that public funding should not support agreements that limit worker opportunities
  • Competitive impact: Unclear whether the prohibition affects only direct employees or also applies to subcontractors and independent contractors in the supply chain
  • Enforceability and scope: Questions remain about what constitutes prohibited "restrictive covenants" and whether legitimate intellectual property protections are adequately preserved
  • Compliance costs: Contractors may face increased administrative burden in rewriting employment agreements for public vs. private work

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

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