Signed by Governor Butch Otter

Vote Smart's Synopsis:

Vote to pass a bill that provides for non-compete contracts between employer and employee to protect the employer's business interests.

Highlights:

- Specifies that non-compete contracts prohibit key employees or independent contractors, upon termination of employment, from engaging in employment or a line of business that is in direct competition with the employer's business (Sec. 1). - Limits the scope of non-compete contracts to employees who have the ability to harm an employer's legitimate business interests as a result of gaining a high level of inside knowledge, influence, credibility, notoriety, fame, or reputation as a representative of that employer (Sec. 1). - Specifies that a legitimate business interest includes the employer's goodwill, technologies, intellectual property, business plans, methods of operation, customers, vendors, financial and marketing information, and trade secrets (Sec. 1). - Allows the courts to modify or limit non-compete contracts that are found to be unreasonable (Sec. 1). - Prohibits non-compete agreements from establishing a post-employment restriction that exceeds a period of 18 months from the time of the employee's or independent contractor's termination of employment (Sec. 1).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that provides for non-compete contracts between employer and employee to protect the employer's business interests.

Highlights:

- Specifies that non-compete contracts prohibit key employees or independent contractors, upon termination of employment, from engaging in employment or a line of business that is in direct competition with the employer's business (Sec. 1). - Limits the scope of non-compete contracts to employees who have the ability to harm an employer's legitimate business interests as a result of gaining a high level of inside knowledge, influence, credibility, notoriety, fame, or reputation as a representative of that employer (Sec. 1). - Specifies that a legitimate business interest includes the employer's goodwill, technologies, intellectual property, business plans, methods of operation, customers, vendors, financial and marketing information, and trade secrets (Sec. 1). - Allows the courts to modify or limit non-compete contracts that are found to be unreasonable (Sec. 1). - Prohibits non-compete agreements from establishing a post-employment restriction that exceeds a period of 18 months from the time of the employee's or independent contractor's termination of employment (Sec. 1).

Full Bill Text