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2014 SESSION

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HB 794 Employment; nonsolicitation agreements between employers and employees.

Introduced by: James M. LeMunyon | all patrons    ...    notes | add to my profiles

SUMMARY AS INTRODUCED:

Nonsolicitation agreements. Establishes five requirements for a valid and enforceable nonsolicitation agreement between an employer and an employee, including a requirement that the restrictions imposed by the agreement are protective of the employer's legitimate business interest. The requirements do not apply to nonsolicitation agreements between an employer and an employee who owned greater than five percent of the ownership interests of the employing business entity. Absent an agreement to the contrary, the solicitation activities that are restrained, prohibited, or otherwise restricted by a nonsolicitation agreement shall not be increased or expanded as a result of the employer being acquired by merging with another business entity. The measure requires courts in actions seeking enforcement of, or challenging the enforceability of, a nonsolicitation agreement to award attorney fees and costs to the prevailing party. The measure does not apply in proceedings to determine the enforceability of agreements entered into prior to July 1, 2014.


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