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Bill > HB1326


MO HB1326

Establishes standards in regard to covenants not to compete


summary

Introduced
02/17/2025
In Committee
05/15/2025
Crossed Over
Passed
Dead
05/16/2025

Introduced Session

2025 Regular Session

Bill Summary

Establishes standards in regard to covenants not to compete

AI Summary

This bill establishes new standards for covenants not to compete in Missouri, specifically defining such covenants as agreements where an employee promises not to work for a competitor or compete against their current/former employer after leaving a job. The key provision is that any covenant not to compete will be automatically void and unenforceable if it applies to employees who are paid hourly wages. A covenant not to compete can potentially include time or geographic restrictions, but these are not mandatory. The bill aims to protect hourly workers from being contractually prevented from seeking employment opportunities after leaving a job, which could otherwise limit their ability to find work or advance their careers. By rendering such agreements unenforceable for hourly workers, the legislation seeks to provide greater employment flexibility and mobility for workers who are typically in lower-wage, less specialized positions.

Sponsors (1)

Last Action

Referred: Emerging Issues(H) (on 05/15/2025)

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