HB5570 - Employment Noncompete Agreement Act

• Establishes criteria for valid noncompete agreements between employers and employees, requiring agreements be in writing and signed by both parties.

• Permits noncompete agreements to prohibit solicitation of existing customers, clients, identified prospects, and employees during the post-employment restriction period.

• Restricts maximum post-employment periods based on annualized compensation: 6 months for under $50,000; 9 months for $50,000-$99,999; 12 months for $100,000-$149,999; and 18 months for $150,000 and above.

• Eliminates requirement for employers to provide additional consideration to enforce noncompete agreements and allows prevailing parties to recover damages, costs, and attorney's fees.

• Makes subsequent employers liable for damages and attorney's fees if they aid and abet an employee's breach of a valid noncompete agreement.