Bill > S2418

This bill establishes new regulations for noncompetition agreements and trade secret enforcement, aiming to create a uniform legal framework. It repeals existing laws related to these matters and introduces a new chapter, the Uniform Trade Secrets Act, which defines terms like "improper means" (including theft, bribery, or breach of confidence, but excluding reverse engineering from properly accessed information), "misappropriation" (acquiring a trade secret through improper means or using it when one knows it was acquired improperly), and "trade secret" (information providing an economic advantage and subject to reasonable efforts to protect it). The bill also outlines remedies for trade secret misappropriation, including injunctions and damages, and establishes procedures for preserving secrecy during legal proceedings. Furthermore, it introduces specific requirements for noncompetition agreements to be considered valid and enforceable, such as being in writing, providing employees with the right to consult legal counsel, limiting the restricted period to a maximum of three months (with exceptions for breaches of fiduciary duty or theft of property), and requiring reasonable geographic and scope limitations. It also mandates that such agreements be supported by a "garden leave clause" (where the employer pays the employee during the restricted period) or other agreed-upon consideration equivalent to at least 100% of the employee's highest annualized earnings in the two years prior to termination, negotiated after employment ends. The bill explicitly states that noncompetition agreements are not enforceable against certain workers, including non-exempt employees, interns, employees terminated without cause, those under 18, employees earning less than twice the state's average weekly wage, and independent contractors. It also clarifies that courts cannot reform or revise noncompetition agreements to make them valid if they don't meet these requirements and prohibits penalties for employees challenging these agreements.