HB 4355

Abstract

Creates the Employment Noncompete Agreement Act. Finds that employers have vested, protectable interests in their customers, clients, and identified prospects that are legitimately protectable through the use of noncompete agreements. Establishes criteria for a valid noncompete agreement between an employer and an employee. Provides that a noncompete agreement may prohibit any solicitation of an employer's existing customers, clients, identified prospective customers, and other employees during the post-employment restriction period. Provides that the restriction period must have a reasonable relationship to an employee's position and salary at the time of termination and may not exceed specified maximum periods based upon 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. Establishes remedies.