Bill > AB481

Introduced Session

Under current law, a restrictive covenant in an employment contract that prohibits an assistant, servant, or agent from competing with his or her employer or principal during the term of the employment or agency, or after the termination of the employment or agency, within a specified territory and during a specified time is lawful and enforceable if the restrictions imposed are reasonably necessary for the protection of the employer or principal. Such a covenant that imposes an unreasonable restraint is illegal, void, and unenforceable even as to any part of the covenant or performance that would be a reasonable restraint. This bill makes most such covenants illegal, void, and unenforceable after the termination of employment or agency. A nondisclosure agreement related to personal information of the the employer or principal or the customers of the employer or principal or a restrictive covenant prohibiting the unauthorized use by a former employee or agent of a customer list or intellectual property owned or licensed by the employer or principal is not illegal, void, or unenforceable under the bill.

AI Summary

Committee Categories

Clint Anderson (D)*,  Jimmy Anderson (D)*,  Mike Bare (D)*,  Marisabel Cabrera (D)*,  Sue Conley (D)*,  Dave Considine (D)*,  Jodene Emerson (D)*,  Evan Goyke (D)*,  Kalan Haywood (D)*,  Alex Joers (D)*,  Tod Ohnstad (D)*,  Sylvia Ortiz-Velez (D)*,  Lori Palmeri (D)*,  Melissa Ratcliff (D)*,  Katrina Shankland (D)*,  Kristina Shelton (D)*,  Lee Snodgrass (D)*,  Shelia Stubbs (D)*,  Lisa Subeck (D)*,  Melissa Agard (D),  Tim Carpenter (D),  Chris Larson (D),  Jeff Smith (D),  Mark Spreitzer (D),  Lena Taylor (D),  Bob Wirch (D), 

Failed to pass pursuant to Senate Joint Resolution 1 (on 04/15/2024)

Official Document