HB 6840

Abstract

Creates the Employment Noncompete Agreement Act. Contains a finding that all employers have vested, protectable interests in their customers, clients, and identified prospects which are legitimately protectable through the use of noncompete agreements. Provides that a noncompete agreement between an employer and an employee that is specifically designed to impede the ability of an employee from competing with an employer upon the termination of the employment relationship is valid if it meets all of the following criteria: it must be in writing and be signed by both the employee and employer; it may prohibit any solicitation of an employer's existing customers, clients, identified prospective customers, and other employees during the period of any post-employment restriction period; and the duration of a post-employment restriction period must have a reasonable relationship to an employer's position and salary at the time of termination and may not exceed specified maximum periods based on annualized compensation. Provides that no specific or additional consideration is required to be paid by an employer to an employee to enforce a noncompete agreement. Contains provisions regarding remedies and applicability.