SB367 Summary

• Voids contracts that restrain anyone from exercising a lawful profession, trade, or business unless they fall within specific exceptions.

• Permits restrictive covenants to protect legitimate business interests including trade secrets, confidential information, customer relationships, and good will, but excludes job skills alone as a protectable interest.

• Establishes presumed reasonable timeframes: one year for business sale non-compete agreements, two years for employee non-compete agreements, and 18 months for non-solicitation agreements or duration of post-separation payments (whichever is greater).

• Requires all restrictive covenant agreements to be in writing, signed by all parties, and supported by adequate consideration; allows courts to reform overly broad restraints or void them entirely if outside the statutory exceptions.

• Provides remedies for breach including injunctive relief, actual or liquidated damages, and attorneys' fees if provided in the contract; repeals existing Section 8-1-1 and takes effect January 1, 2016.