AR SB998

Creates enforceable covenant not to compete agreements ancillary to employment relationships if the employer has a protectable business interest and the agreement limits time and scope reasonably.

Defines protectable business interests to include trade secrets, intellectual property, customer lists, goodwill, business practices, methods, profit margins, costs, confidential information, employee training, and valuable employer data.

Establishes that a post-termination restriction of 2 years is presumptively reasonable unless facts clearly demonstrate it is unreasonable compared to the employer's protectable business interest.

Permits courts to award damages, injunctive relief, or both for breaches, and allows courts to reform overly broad agreements to reasonable terms while maintaining enforceability.

Does not apply to non-employment covenants, professional licensees under Title 17 Subtitle 3, or other employment agreements like non-solicitation, confidentiality, and nondisclosure agreements.