Senate committee narrows noncompete language for health‑care workers, delays final vote

The Senate Economic Development, Housing & General Affairs Committee considered S.230a, a labor bill from the House, on May 14 and agreed to focus its amendment narrowly on noncompete provisions for health‑care providers while postponing a final floor decision to a date certain next Wednesday.

The chair, opening the session, said the committee would prioritize two amendments: one to limit noncompete restrictions to health‑care providers and another to convene conversations about solicitation in Department of Corrections parking lots. The committee also agreed to restore self‑attestation language for victims of domestic violence that had been changed in prior committee action.

Jessa Barnard of the Vermont Medical Society told the committee the health‑care carve‑out has been discussed with multiple health‑care associations since early in the session and is intended to "help, make sure there can be continuity of care for patients, and address some of the unique access to care issues that Vermont needs around healthcare," including enabling out‑of‑state contract employees to be hired by Vermont providers who wish to retain them.

Committee members asked whether similar language exists in other states and whether a Vermont noncompete would be effective for traveling nurses working under contracts governed by another state's law. A staff speaker said the draft does not include a wage threshold and that Vermont's statutory definitions of "health‑care provider" are broad; the staff offered to adopt the definition used in H.205 or cross‑reference Title 18 to clarify which workers would be covered.

Barnard said enforceability against traveling staff can depend on the law named in the contract; she noted the draft includes model language (drawn from New Mexico in the discussion) that would subject certain contract provisions to Vermont law to prevent companies from evading Vermont protections by selecting a different governing law.

Because several senators raised concerns about moving the bill to the floor while other members (named in the discussion as absent) had not yet weighed in, a committee member moved to pass the item over to a date certain. The committee set the item for next Wednesday to allow time for staff to draft a clear definition of "health‑care provider," for Barnard and staff to consult with Sophie and other stakeholders, and for absent members to review the revisions.

The hearing record also notes that the commissioner of Buildings and General Services will facilitate conversations between the Department of Corrections and the Vermont State Employees Association on the solicitation issue, which will be addressed in session law rather than by immediate committee amendment.

The committee recessed briefly to confer and will reconvene at the scheduled date certain to resume consideration.