87S30101 RDS-D
By: Harris H.B. No. 119
A BILL TO BE ENTITLED
AN ACT
relating to the enforceability of a covenant not to compete with
respect to certain employees discharged from employment for refusal
or failure to receive a COVID-19 vaccination.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 15.50, Business & Commerce Code, is
amended by amending Subsection (a) and adding Subsection (d) to
read as follows:
(a) Notwithstanding Section 15.05 of this code, and subject
to any applicable provision of Subsection (b) or (d), a covenant not
to compete is enforceable if it is ancillary to or part of an
otherwise enforceable agreement at the time the agreement is made
to the extent that it contains limitations as to time, geographical
area, and scope of activity to be restrained that are reasonable and
do not impose a greater restraint than is necessary to protect the
goodwill or other business interest of the promisee.
(d) A covenant not to compete between an employee and an
employer is not enforceable against an employee who is discharged
from employment with the employer solely because the employee
refused or failed to receive a COVID-19 vaccination required by the
employer. For purposes of this subsection:
(1) "COVID-19" means the 2019 novel coronavirus
disease.
(2) "Employee" means an individual who is employed by
an employer for compensation.
(3) "Employer" means a person who employs one or more
employees.
SECTION 2. The change in law made by this Act applies only
to a covenant not to compete that is ancillary to or part of an
agreement entered into on or after the effective date of this Act.
A covenant not to compete that is ancillary to or part of an
agreement entered into before the effective date of this Act is
governed by the law in effect at the time the agreement was entered
into, and that law is continued in effect for that purpose.
SECTION 3. This Act takes effect on the 91st day after the
last day of the legislative session.