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ID H0487
Bill
Status
Passed
3/30/2016
Primary Sponsor
Business Committee
Click for details
AI Summary
- Postemployment non-compete restrictions cannot exceed 18 months unless additional consideration beyond employment is provided to key employees or independent contractors
- Agreements or covenants with 18-month or less postemployment terms are presumed reasonable as to duration
- Agreements limited to geographic areas where the employee or contractor worked and to their type of employment or line of business are presumed reasonable
- Employees or independent contractors in the highest paid 5% of the employer's workforce are presumed to be "key employees" or "key independent contractors"
- If a court finds a key employee or independent contractor breaches an agreement or covenant, a rebuttable presumption of irreparable harm is established, which can only be rebutted by showing the employee has no ability to adversely affect the employer's legitimate business interests
Legislative Description
Amends existing law to provide that a rebuttable presumption of irreparable harm is established under certain circumstances.
AGREEMENTS PROTECTING LEGITIMATE BUSINESS INTERESTS
Last Action
Reported Signed by Governor on March 30, 2016 Session Law Chapter 281 Effective: 07/01/2016
3/30/2016
Committee Referrals
Business2/15/2016
Full Bill Text
No bill text available