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AR SB665
Bill
Status
10/15/2021
Primary Sponsor
Bob Ballinger
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AI Summary
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Reduces the presumptively reasonable non-compete restriction period from 2 years to 1 year post-termination for employment relationships.
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Makes non-compete agreements between employers and non-management employees completely unenforceable, with limited exceptions for positions requiring significant skill or training.
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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.
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Shifts burden of proof to employers attempting to enforce non-compete agreements and requires unsuccessful employers to pay employees' attorney's fees.
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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