Establishes standards in regard to covenants not to compete
Summary
HB1326 would add a new section to Missouri law defining a “covenant not to compete” and limiting when such agreements can be enforced. Under the bill, a noncompete includes agreements that prevent an employee or prospective employee from competing with, or taking a job with a competitor of, a current or former employer after the employment relationship ends. The bill also makes clear that these agreements may include time-based or geographic restrictions, but that definition is secondary to the main enforcement rule.
The core change is that any covenant not to compete would be void and unenforceable to the extent it applies to an employment arrangement in which an employee is paid hourly wages or would be paid hourly wages. In practical terms, the bill would prohibit employers from using noncompete clauses against hourly workers, while leaving other employment arrangements potentially subject to existing law and enforceability standards.
Impact
HB1326 would amend Chapter 431 of the Missouri Revised Statutes by creating section 431.203 and carving out hourly-wage employment from enforceable noncompete agreements. The bill would affect employers, employees, and prospective employees by limiting the use of post-employment restrictions in hourly positions, and it would override contrary provisions in section 431.202 or any other law to the extent of the conflict. The measure would likely reduce the ability of businesses to restrict job mobility for hourly workers and could affect hiring, retention, and contract drafting practices across Missouri.
Sentiment
Based on the bill text and the absence of recorded committee debate or votes in the provided materials, the overall sentiment appears to be policy-focused rather than overtly contentious in the available record. The bill’s caption suggests a regulatory effort to set standards for noncompete agreements, and the language indicates a targeted restriction aimed at hourly workers. No formal vote history or transcript evidence is provided to show support or opposition, so the public or legislative reaction cannot be measured beyond the proposal itself.
Contention
The main point of contention likely concerns whether employers should be allowed to use noncompete agreements for hourly workers. Supporters would likely view the bill as protecting worker mobility and bargaining power, especially for lower-wage employees who may have less leverage in employment contracts. Opponents would likely argue that the bill limits employer tools for protecting business interests, confidential information, and customer relationships. Another possible issue is the bill’s interaction with existing Missouri noncompete law, since it expressly overrides conflicting provisions only as to hourly-wage arrangements.