Vote Smart's Synopsis:

Vote to adopt an amendment that limits the use of employee noncompetition agreements.

Highlights:

• Requires the “restricted period” of an “employee noncompetition agreement” to be no more than 6 months or a “reasonable” duration based on the interests protected and the duration of employment (Sec. XX).

• Requires an “employee noncompetition agreement” to be limited to the geographic area an employee provided services in or had a “material influence” in during their last 2 years of employment (Sec. XX).

• Defines “employee noncompetition agreement” as an agreement between an employer and employee in which the employee agrees that he or she will avoid engaging in certain activities that compete with those of his or her employer after separation from the employer (Sec. XX).

• Defines “restricted period” as the period of time after an employee separates from an employer and cannot engage in activities competitive with his or her prior employer due to an employee noncompetition agreement (Sec. XX).

• Prohibits employee noncompetition agreements from being enforceable against an employee who is nonexempt under the Fair Labor Standards Act (Sec. XX).

• Specifies that the provisions of this amendment will only apply to noncompetition agreements that are entered into either on or after January 1, 2015 (Sec. XXI).

Full Bill Text