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AR SB665

Bill

Status

Failed

10/15/2021

Primary Sponsor

Bob Ballinger

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Origin

Senate

93rd General Assembly (2021 Regular)

AI Summary

  • Reduces the presumptively reasonable non-compete restriction period from 2 years to 1 year post-termination for employment relationships.

  • Makes non-compete agreements between employers and non-management employees completely unenforceable, with limited exceptions for positions requiring significant skill or training.

  • Requires non-compete agreements to be separately signed from employment agreements with clear notice, and mandates employers provide employees a copy of their job description at execution or the agreement becomes unenforceable.

  • Shifts burden of proof to employers attempting to enforce non-compete agreements and requires unsuccessful employers to pay employees' attorney's fees.

  • Expands the definition of protectable business interests to include trade secrets, intellectual property, customer lists, goodwill, specialized methods, profit margins, costs, confidential business information, and training costs, while allowing courts to reform unreasonable restrictions rather than void them entirely.

Legislative Description

To Modify The Statutes Concerning Covenant Not To Compete Agreements.

Last Action

Died in Senate Committee at Sine Die adjournment.

10/15/2021

Committee Referrals

Insurance & Commerce4/12/2021

Full Bill Text

No bill text available