We’ve had great input from many sources regarding our proposed legislation on non-competition agreements which we last released in July. Representative Ehrlich and I are pleased to now publish a next draft for continued input.
Click here to see the full text of the new draft. We’ve attempted to simplify and clarify the legislation and also to respond to numerous specific points. We look forward to continuing to listen to reactions to the draft.
The legislation is designed to give employers incentives to consistently write narrow, fair non-compete agreements — agreements that protect legitimate emloyer interests without unduly hampering employees who need to leave their job. The basic approach is to create safe harbor terms — six month agreements narrowly limited in geographic and activity scope — that will be reliably enforced, while placing employers at risk of non-enforcement and attorneys fees awards if they go beyond those terms. For a more detailed analysis, see the website of the lead attorney drafter of the legislation, Russell Beck.
A formal hearing on the legislation will be held at 10:30AM on October 7 in Room A-2 in the state house. If you know you would like to testify and would like to coordinate with our testimony, please be in touch with Caroline Huang at the following e-mail: info@ProhibitRestrictiveEmploymentCovenants.net