05/06/2026
⚠️ Tennessee employers, let’s talk about Non-Competes.
This topic has come up with several of my clients recently, and the timing makes sense.
Tennessee lawmakers have officially passed HB1034/SB0995, legislation that would make significant changes to how non-compete agreements are handled, including restrictions on using them for employees earning less than $70,000 per year.
A recent Bradley article gives a helpful employer-focused summary of the proposed changes, and the big takeaway is this:
Now is a good time to review your agreements before you are forced to review them under pressure.
Which, as we all know, is everyone’s favorite compliance strategy. Right after “we found this template online” and “I’m sure it’s probably fine.” 😅
Non-Compete agreements can serve a valid business purpose, especially when employees have access to sensitive business information, key client relationships, pricing strategy, trade secrets, or other competitive information.
But like most HR documents, they work best when they are intentional.
Not every role carries the same risk. Not every position needs the same level of restriction. And it turns out, when everyone signs one, the agreement may actually be harder to enforce. The “we have everyone sign one” may not be the best long-term strategy.
Because if your executive team, sales team, office assistant, and summer intern all sign the exact same non-compete, it raises a fair question:
What specific business interest is this agreement actually protecting?
For TN employers, now is a good time to review:
1. Who is signing non-competes
2. Why those agreements are being used
3. Whether the restrictions match the role
4. Whether the agreements should be reviewed by employment counsel
5. Whether confidentiality or non-solicitation language may be more appropriate
The goal is not to eliminate business protections. It's to make sure those protections are thoughtful, current, and aligned with the actual role.
Because a good restrictive agreement should be more like a tailored suit and less like a poncho from a gas station.
It should fit the role, fit the risk, and not inadvertently create a bigger mess than the one it was supposed to prevent.
Check out the full article here: https://www.employmentlawinsights.com/2026/04/tennessee-passes-major-changes-to-noncompete-law-what-employers-need-to-know/
The Tennessee 114th General Assembly has recently passed significant legislation reshaping how noncompetes are evaluated and enforced. Specifically, the
