Vote Smart's Synopsis:

Vote to pass a bill that prohibits non-compete agreements from employers.

Highlights:

• Defines a non-compete agreement as an agreement or clause contained in any agreement between an employee and a covered individual which prohibits or restricts the individual from obtaining employment after employment has concluded with the employer included as a party to the agreement (Sec. 1).

• Defines a covered individual as a person who, whether employed under a contract of employment or not, performs work or services for another person on such terms that they are in a position of economic dependence, and under an obligation to perform duties for that other person (Sec. 1).

• Prohibits any employer, agent, corporation, company, or other entity from seeking, requiring, demanding, or accepting a non-compete agreement from any covered individual (Sec. 1).

• Requires that every contract which restrains anyone from engaging in a lawful profession, trade, or business be void (Sec. 1).

• Authorizes a covered individual to bring civil action in a court of competent jurisdiction against any employer or person who violated this section (Sec. 1).

• Requires that the individual takes civil action against such action within two years when (Sec. 1):

• The non-compete agreement was signed;

• The covered individual learns of the prohibited non-compete agreement;

• The employment or contractual relationship has been terminated; or

• When the employer takes any step to enforce a non-compete agreement.

• Authorizes jurisdiction to the court to void any non-compete agreement and to order appropriate relief, including enjoining the conduct of any employer, payment of liquidated damages, awarding lost compensation, damages, and reasonable attorney fees and costs (Sec. 1).

• Requires that liquidated damages be calculated as an amount no more than $10,000 (Sec. 1).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that prohibits non-compete agreements from employers.

Highlights:

• Defines a non-compete agreement as an agreement or clause contained in any agreement between an employee and a covered individual which prohibits or restricts the individual from obtaining employment after employment has concluded with the employer included as a party to the agreement (Sec. 1).

• Defines a covered individual as a person who, whether employed under a contract of employment or not, performs work or services for another person on such terms that they are in a position of economic dependence, and under an obligation to perform duties for that other person (Sec. 1).

• Prohibits any employer, agent, corporation, company, or other entity from seeking, requiring, demanding, or accepting a non-compete agreement from any covered individual (Sec. 1).

• Requires that every contract which restrains anyone from engaging in a lawful profession, trade, or business be void (Sec. 1).

• Authorizes a covered individual to bring civil action in a court of competent jurisdiction against any employer or person who violated this section (Sec. 1).

• Requires that the individual takes civil action against such action within two years when (Sec. 1):

• The non-compete agreement was signed;

• The covered individual learns of the prohibited non-compete agreement;

• The employment or contractual relationship has been terminated; or

• When the employer takes any step to enforce a non-compete agreement.

• Authorizes jurisdiction to the court to void any non-compete agreement and to order appropriate relief, including enjoining the conduct of any employer, payment of liquidated damages, awarding lost compensation, damages, and reasonable attorney fees and costs (Sec. 1).

• Requires that liquidated damages be calculated as an amount no more than $10,000 (Sec. 1).

Full Bill Text