Employment; nonsolicitation agreements between employers and employees. (HB794)

Introduced By

Del. Jim LeMunyon (R-Oak Hill)

Progress

Introduced
Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law

Description

Nonsolicitation agreements. Establishes five requirements for a valid and enforceable nonsolicitation agreement between an employer and an employee, including a requirement that the restrictions imposed by the agreement are protective of the employer's legitimate business interest. The requirements do not apply to nonsolicitation agreements between an employer and an employee who owned greater than five percent of the ownership interests of the employing business entity. Absent an agreement to the contrary, the solicitation activities that are restrained, prohibited, or otherwise restricted by a nonsolicitation agreement shall not be increased or expanded as a result of the employer being acquired by merging with another business entity. The measure requires courts in actions seeking enforcement of, or challenging the enforceability of, a nonsolicitation agreement to award attorney fees and costs to the prevailing party. The measure does not apply in proceedings to determine the enforceability of agreements entered into prior to July 1, 2014. Read the Bill »

Outcome

Bill Has Failed

History

DateAction
01/07/2014Committee
01/07/2014Prefiled and ordered printed; offered 01/08/14 14103250D
01/07/2014Referred to Committee for Courts of Justice
01/10/2014Assigned Courts sub: Civil
01/15/2014Subcommittee recommends laying on the table
02/12/2014Left in Courts of Justice