Rep. Cohn files bill in North Carolina House to regulate restrictive employment agreements

A new bill filed by State Rep. Bryan Cohn in the North Carolina House seeks to regulate restrictive employment agreements to protect workers and clarify enforceability requirements, according to the North Carolina State House.

The bill, filed as HB 973 on April 10 during the 2025 regular session, was formally listed with the short title: ‘Uniform Restrictive Employment Agreement Act.’

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill establishes the Uniform Restrictive Employment Agreement Act to regulate restrictive employment agreements in North Carolina. It defines various types of agreements, such as noncompete, nonsolicitation, and confidentiality agreements, and sets provisions for their enforceability. The bill prohibits such agreements unless they meet specific requirements concerning notification, scope, and duration. It restricts agreements for low-wage workers and requires that noncompete agreements protect legitimate business interests and be narrowly tailored. The bill specifies that certain agreements are unenforceable if terminated under certain conditions and prohibits courts from modifying agreements to make them enforceable. Employers violating the act may face penalties. The act also outlines requirements for choice of law and venue provisions and mandates clear communication with workers regarding agreement terms. The act takes effect Jan. 1, 2026.

Of the four sponsors of this bill, Pricey Harrison proposed the most bills (53) during the 2025 regular session.

Bills in North Carolina follow a multi-step process before becoming law. A lawmaker starts by filing a bill, which is assigned to a committee for review. The bill must be read three times in each chamber. If one chamber changes the bill after the other passes it, both must agree on the final version. Once both chambers approve the same bill, it goes to the governor, who has 10 days (or 30 if the legislature is not in session) to sign, veto, or let it become law without a signature.

You can read more about the bills and other measures here.

Cohn, a Democrat, was elected to the North Carolina State House in 2025 to represent the state’s 32nd House district, replacing previous state representative Frank Sossamon.