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HI HB1090

Bill

Status

Passed

7/1/2015

Primary Sponsor

Chris Lee

Click for details

Origin

House of Representatives

2015 Regular Session

AI Summary

  • Prohibits noncompete and nonsolicit clauses in employment contracts for employees of technology businesses, making such clauses void and unenforceable.

  • Defines "technology business" as a trade or business deriving the majority of gross income from software development or information technology development, excluding broadcast and telecommunications carriers.

  • Permits restrictive covenants protecting trade secrets under existing law but prohibits broader noncompete restrictions that impose undue hardship on technology sector employees.

  • Effective July 1, 2015, with the prohibition not retroactively affecting rights, penalties, and proceedings that occurred before the effective date.

Legislative Description

Technology Businesses; Employment Covenants or Agreements; Noncompete Clause; Nonsolicit Clause

Last Action

Act 158, on 06/26/2015 (Gov. Msg. No. 1259).

7/1/2015

Committee Referrals

Economic Development & Business4/20/2015
Judiciary and Labor3/27/2015
Economic Development and Technology3/12/2015
Consumer Protection & Commerce2/20/2015
Economic Development & Business2/2/2015

Full Bill Text

No bill text available