HB 262 VETERINARY NON-COMPETE PROVISIONS

Rep Joanne Ferrary

Actions: [4] not prntd-HRC

Scheduled: Not Scheduled

 House Bill 262, relating to veterinary medicine, makes non-compete provisions in veterinarian and veterinary technician agreements unenforceable. 

 House Bill 262 (HB 262) makes non-compete provisions in veterinarian and veterinary technician agreements unenforceable.

SECTION 1 provides definitions as used in HB 262.

SECTION 2 adds new material to address enforceability of a noncompete provision.
A. A non-compete provision in an agreement shall be unenforceable upon the termination of: (1) the agreement;
(2) a renewal or extension of the agreement; or 
(3) a veterinarian or veterinary technician's employment with a party seeking to enforce the agreement. 

B. A provision in an agreement for veterinary care to be rendered in this state is void, unenforceable and against public policy if the provision: 
(1) makes the agreement subject to the laws of another state; or 
(2) requires any litigation arising out of the agreement to be conducted in another state. 

SECTION 3 specifies the enforceability of other provisions. Nothing in this act shall be construed to limit the enforceability of: 
A. a provision in an agreement requiring a veterinarian or a veterinary technician who has worked for an employer for an initial period of less than two years to repay all or a portion of:
(1) a loan; 
(2) relocation expenses; 
(3) a signing bonus or other remuneration to induce the veterinarian or veterinary technician to relocate or establish a veterinary care practice in a specified geographic area; or 
(4) recruiting, education and training expenses; 

B. a nondisclosure provision relating to confidential information and trade secrets; and 

C. any other provision of an agreement that is not in violation of law. 

SECTION 4 makes this applicable to agreements, or renewals or extensions of agreements, executed on or after July 1, 2024.