HCS SB 381 -- NON-SOLICITATION AGREEMENTS

SPONSOR:  Klarich (Hickey)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Labor by
a vote of 15 to 1.

This substitute makes written non-solicitation agreements
enforceable.  These agreements will not be considered restraints
of trade if they are:  (a) between 2 or more business entities
seeking to protect workforce stability or protection against
misuse of trade secrets; (b) between employers and employees
seeking to protect trade secrets or customer relationships; or
(c) between employers and employees, other than secretarial or
clerical staff, and have a post-employment duration of less than
one year.  The substitute will not affect Missouri law regarding
covenants not to compete, and it will apply prospectively and
retrospectively.

FISCAL NOTE:  Not available at time of printing.

PROPONENTS:  Supporters say that the bill clarifies current
Missouri judicial statutory interpretations that prevent
non-solicitation agreements from being enforced.  Supporters
believe the bill will not, under any circumstance, prevent
persons from working, nor will it affect Missouri law regarding
covenants not to compete.  Rather, it will simply prevent
individuals from leaving one employer and subsequently
attempting to lure former fellow employees from leaving as well.

Testifying for the bill were Senator Klarich; and Bryan Cave,
LLP.

OPPONENTS:  Those who oppose the bill say that they have
concerns that the bill, as originally brought over from the
Senate, might affect an individual's ability to leave a current
job for another one.

Testifying against the bill was the Missouri AFL-CIO.

Greg Linhares, Legislative Analyst

Missouri House of Representatives
Last Updated November 26, 2001 at 11:47 am