| 1 | 1 | | 87S30101 RDS-D |
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| 2 | 2 | | By: Harris H.B. No. 119 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the enforceability of a covenant not to compete with |
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| 8 | 8 | | respect to certain employees discharged from employment for refusal |
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| 9 | 9 | | or failure to receive a COVID-19 vaccination. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 15.50, Business & Commerce Code, is |
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| 12 | 12 | | amended by amending Subsection (a) and adding Subsection (d) to |
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| 13 | 13 | | read as follows: |
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| 14 | 14 | | (a) Notwithstanding Section 15.05 of this code, and subject |
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| 15 | 15 | | to any applicable provision of Subsection (b) or (d), a covenant not |
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| 16 | 16 | | to compete is enforceable if it is ancillary to or part of an |
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| 17 | 17 | | otherwise enforceable agreement at the time the agreement is made |
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| 18 | 18 | | to the extent that it contains limitations as to time, geographical |
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| 19 | 19 | | area, and scope of activity to be restrained that are reasonable and |
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| 20 | 20 | | do not impose a greater restraint than is necessary to protect the |
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| 21 | 21 | | goodwill or other business interest of the promisee. |
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| 22 | 22 | | (d) A covenant not to compete between an employee and an |
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| 23 | 23 | | employer is not enforceable against an employee who is discharged |
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| 24 | 24 | | from employment with the employer solely because the employee |
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| 25 | 25 | | refused or failed to receive a COVID-19 vaccination required by the |
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| 26 | 26 | | employer. For purposes of this subsection: |
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| 27 | 27 | | (1) "COVID-19" means the 2019 novel coronavirus |
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| 28 | 28 | | disease. |
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| 29 | 29 | | (2) "Employee" means an individual who is employed by |
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| 30 | 30 | | an employer for compensation. |
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| 31 | 31 | | (3) "Employer" means a person who employs one or more |
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| 32 | 32 | | employees. |
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| 33 | 33 | | SECTION 2. The change in law made by this Act applies only |
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| 34 | 34 | | to a covenant not to compete that is ancillary to or part of an |
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| 35 | 35 | | agreement entered into on or after the effective date of this Act. |
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| 36 | 36 | | A covenant not to compete that is ancillary to or part of an |
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| 37 | 37 | | agreement entered into before the effective date of this Act is |
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| 38 | 38 | | governed by the law in effect at the time the agreement was entered |
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| 39 | 39 | | into, and that law is continued in effect for that purpose. |
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| 40 | 40 | | SECTION 3. This Act takes effect on the 91st day after the |
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| 41 | 41 | | last day of the legislative session. |
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