What NC House Bill 269 Could Mean for Non-Compete Agreements in North Carolina

Non-compete agreements have long been a controversial tool in the corporate world—sometimes protecting legitimate business interests, and sometimes limiting employees’ opportunities and mobility. But what happens when potential changes to these rules are on the horizon? North Carolina House Bill 269, the “Workforce Freedom and Protection Act,” proposes just that—a potential shift in how non-competes function statewide. For business owners and employees alike, now is the time to understand this prospective law and what it could mean for your future. 

Introducing House Bill 269

House Bill 269 is a new proposal that could change the rules for non-compete agreements in North Carolina. If it passes, you can expect to see shifts in how employers and workers handle these contracts. While there hasn’t been much movement since the bill was filed back in March 2025, it’s still generating a buzz—especially because it’s part of a broader move to balance business interests and employee freedom.

Even though the bill’s future is up in the air, it’s wise to stay tuned and be ready for whatever happens next.

The Current Non-Compete Landscape in North Carolina

Before we look at how things might change, let’s take a clear look at where we are now. Non-compete agreements in North Carolina are designed to help employers protect their business interests, like trade secrets or proprietary information. These contracts usually aim to prevent employees from entering into direct competition, either after leaving their job or within a certain region for a set time.

Key Requirements for Non-Compete Agreements

To be enforceable in North Carolina, a non-compete agreement must check a few boxes:

• Written Agreement: Everything needs to be spelled out in writing and signed.
• Valuable Consideration: Employers have to give you something of substance in return—whether that’s a new job, a promotion, or another benefit.
• Reasonable Scope: The contract should be fair about how long it lasts, where it applies, and what kind of work it restricts. A non-compete that exists until the end of time and restricts an employee from working anywhere in the world, for example, would not be permissible.
• Legitimate Business Interest: It should protect assets like trade secrets or customer relationships, not just block fair competition.

It’s also worth mentioning North Carolina’s “blue-pencil” rule. Under this rule, courts can refuse to enforce part of an agreement that is overly broad or unreasonable but will not rewrite or adjust the terms to make them enforceable.

How HB 269 Could Change the Landscape

House Bill 269 could bring some significant changes. Perhaps the most significant change is a proposed ban on non-compete agreements for employees earning less than $75,000 per year. This number isn’t set in stone: it’s designed to increase over time with inflation, so even more people could be affected in the future.

Effective Date and Scope of Application

The bill had an original prospective effective date of July 1, 2025, though it’s currently unclear what the new effective date will be, if passed.

Only agreements signed on or after the effective date would be subject to the new guidelines. Employers and employees alike should be aware of these distinctions when reviewing contracts.

Legal Recourse for Employees

There’s also a new twist for employees. If you’re harmed by a non-compete that shouldn’t exist under the bill, you’d have the right to sue for damages, attorney’s fees, and other relief. This change could give workers more leverage when challenging restrictive agreements, so knowing your rights matters more than ever.

Why You Need Skilled Legal Counsel

Changes like these can create a lot of questions—and the stakes are high for everyone involved. If you’re a business owner, you want agreements that will stand up in court and protect what you’ve built. If you’re an employee, you want to know what you’re signing and what it could mean for your next steps.

That’s where having a knowledgeable attorney helps. A skilled legal partner can:

• Work with employers to craft agreements that hold up under new regulations
• Help businesses navigate enforcement without landing in legal trouble
• Make sure employees understand what they’re signing, and help them challenge an unfair agreement

With the right guidance, you can confidently handle changes to non-compete laws—whether you’re hiring, switching jobs, or just keeping an eye out for your best interests.

Dozier Miller is Your Partner in Navigating Legal Shifts

At Dozier Miller Law Group, we pride ourselves on giving clear, direct advice to both businesses and employees when it comes to non-compete agreements. Maybe you need a contract reviewed, want to make sure your agreements are up to date, or feel stuck with a restrictive clause—whatever your situation, we’re ready to help.

Right now, the fate of North Carolina House Bill 269 is still up in the air, but that doesn’t mean you should wait and see. Staying informed and planning ahead is the best way to protect your business or your career. Laws like this can change the playing field, so it pays to stay informed and ask questions early.

We’re closely following all the latest developments and are here to help you prepare for whatever’s next. Schedule a consultation with Dozier Miller Law Group, and let’s make sure you’re ready for the road ahead.