FIRSTREGULARSESSION
HOUSEBILLNO.1326
103RDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVEFOGLE.
1453H.01I JOSEPHENGLER,ChiefClerk
ANACT
Toamendchapter431,RSMo,byaddingtheretoonenewsectionrelatingtocovenantsnotto
compete.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Chapter431,RSMo,isamendedbyaddingtheretoonenewsection,tobe
2knownassection431.203,toreadasfollows:
431.203.1.Forpurposesofthissection,"covenantnottocompete"meansan
2agreement,understanding,contract,orcontractualterminwhichanemployeeor
3prospectiveemployeeagreesnottocompeteagainstanemployerorprospective
4employeroragreesnottoacceptanypositionswithacompetitorofanemployeror
5prospectiveemployerfollowingtheterminationofabusinessoremployment
6relationshipbetweentheemployeeorprospectiveemployeeandtheemployeror
7prospectiveemployer.Acovenantnottocompetemay,butneednot,containtime-based
8orgeographiclimitations.
9 2.Notwithstandinganyprovisionofsection431.202oranyotherprovisionof
10lawtothecontrary,acovenantnottocompeteshallbevoidandunenforceabletothe
11extentthatitappliestoanemploymentarrangementwhereinanemployeeisorwould
12bepaidhourlywages.
âś”
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage.