EVEN Act Ensure Vaccine Mandates Eliminate Non-Competes Act
Impact
If enacted, HB 527 would alter the landscape of employment agreements by effectively nullifying existing non-compete clauses in situations where an employee is dismissed for not adhering to mandated COVID-19 vaccination. This change is positioned to empower employees by limiting the scope of employment-related barriers that could arise from such agreements, particularly in industries heavily impacted by vaccine mandates. The implications for employers could include a necessary reevaluation of hiring practices and the use of non-compete clauses in their contracts.
Summary
House Bill 527, known as the 'Ensure Vaccine Mandates Eliminate Non-Competes Act' or 'EVEN Act', seeks to make non-compete agreements unenforceable for employees who are terminated due to not complying with an employer's COVID-19 vaccine mandate. The bill's proponents argue that it is essential to protect workers' rights in light of public health mandates, ensuring that those who refuse vaccination for legitimate reasons are not unfairly subjected to restrictions that inhibit their ability to secure future employment.
Contention
There has been some contention surrounding HB 527, particularly concerning employers' rights and the potential for abuse of the non-compete prohibition. Critics of the bill may argue that it could encourage employees to refuse vaccination and exploit the protections offered by the bill to leave employers without recourse for their hiring and training investments. Additionally, some business groups may express concern that the bill could undermine their ability to protect proprietary information and trade secrets through non-compete agreements.
Enforcement
The legislation also outlines the role of the Federal Trade Commission (FTC) in enforcing the regulations established by the bill. Under the proposed law, the FTC is tasked with creating specific regulations within 60 days of the bill’s enactment to govern compliance and violations. Furthermore, state attorneys general are granted authority to take civil actions against entities violating the provisions of the bill, ensuring a multi-tiered enforcement mechanism designed to uphold its stipulations.
Restricts establishment of mandates to become vaccinated against coronavirus disease 2019 (COVID-19); establishes reimbursement program to cover certain out-of-pocket costs incurred in obtaining COVID-19 vaccine.