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ARTICLE · 28 FEBRUARY 2013

Text Of New Noncompete Bill Now Available

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A commentary on the new noncompete bill.

United StatesEmployment and HR
Michael Rosen
Michael Rosen
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The new noncompete bill discussed in my last post is now available here. As expected, it is substantially shorter and simpler than the previous proposal.  Among other things, it dispenses with a pre-hire notice requirement, garden leave, and attorneys' fees shifting for unreasonable restrictions. Here are the salient features of the new bill:  

  • A noncompete of up to six months is presumptively reasonable in duration. A restriction longer than six months is presumptively unreasonable and unenforceable.
  • However, a noncompete longer than six months may be enforced by a court if (1) the employee has breached his or her fiduciary duty, (2) the employee has taken company property, and/or (3) the employee's annualized compensation is at least $250,000.

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