Missouri at last!
But, before turning to it, for those keeping count, there have been 65 noncompete bills in 25 states so far this year1 — excluding the two pending federal noncompete bills, D.C.’s new law to ban most noncompetes, and any proposed bills that may be circulating, but have not yet been filed. Five bills (one in each of five states2) have died — leaving the current tally at 60 noncompete bills still pending in 21 states. The 21 states are Arkansas, Connecticut, Georgia, Illinois, Iowa, Louisiana, Massachusetts, Minnesota, Missouri, Nevada, New Hampshire, New Jersey, New York, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Texas, Vermont, and West Virginia.
In this series, we are providing details on all pending bills (and any new ones that are filed) — and we will be simultaneously updating our Changing Trade Secrets | Noncompete Laws page. Note that the summaries are (sort-of) color coded for the nature of the bill (ban, modification or establishment of standards, reversal of prior changes) and the groups for whom it creates exceptions or specific limitations (medical, low-wage workers, others).
Up today: Missouri.
Missouri has four separate bills. They are as follows:
- SB.223 (“AN ACT To amend chapter 431, RSMo, by adding thereto one new section relating to restrictive employment covenants for physicians and advanced practice registered nurses”): Introduced on January 6, 2021, the bill would ban noncompetes for physicians and advanced practice registered nurses. Specifically, the bill provides in relevant part, “any contract or agreement that creates or establishes the terms of a partnership, employment, or any other form of professional relationship between a nonprofit hospital or health system and a physician licensed to practice . . . or an advanced practice registered nurse . . . that includes any restriction of the right of such physician or advanced practice registered nurse to practice medicine or nursing in any geographic area for any period of time after the termination of such partnership, employment, or professional relationship shall be void and unenforceable with respect to said restriction . . . .”
The bill is pending before the Senate Labor and Business Committee.
- SB.77 (“AN ACT To amend chapter 431, RSMo, by adding thereto one new section relating to covenants not to compete”): Introduced on January 14, 2021, the bill would ban noncompetes for employees “paid hourly wages.”
The bill is pending before the Senate Small Business and Industry Committee.
- HB.1008 (“AN ACT To repeal sections 415.415, 431.202, and 456.4-419, RSMO, and to enact in lieu thereof five new sections relating to financial transactions”): Introduced on February 1, 2021, the bill does not directly speak to noncompetes. Rather, in addition to addressing various unrelated matters, the bill expands the stated scope of permissible nonsolicitation and no-recruit agreements, while simultaneously preserving the ability to enforce other agreements (e.g., noncompete agreements) “where such covenant is reasonably necessary to protect a party’s legally permissible business interests.” The bill also adds several defined terms for additional clarity.
The bill is pending before the Senate Judiciary and Civil and Criminal Jurisprudence Committee.
- HB.1202 (“AN ACT To repeal sections 143.022, 143.071, and 620.2005, RSMo, and section 620.2005 as enacted by senate bill no. 2, one hundred first general assembly, first regular session, and to enact in lieu thereof six new sections relating to incentives for new businesses”): Introduced on February 19, 2021, the bill would ban noncompetes for employees earning less than or equal to $75,000 from the employer and for employees “employed by an employer working on a contract with the United States Department of Defense.”
The bill is pending before the Senate Small Business and Industry Committee.
Next up: Nevada
And, remember, if you want to see a summary of the current noncompete law in any state (and D.C.), please refer to our 50-state noncompete chart, which is updated on a continual basis, as the laws change.
*A huge thank you to Erika Hahn for all of her extraordinary help in tracking and monitoring all of the bills.
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[1] The 25 states are: Arkansas, Connecticut, Georgia, Illinois, Iowa, Kentucky, Louisiana, Massachusetts, Minnesota, Mississippi, Missouri, Nevada, New Hampshire, New Jersey, New York, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Texas, Utah, Vermont, Virginia, and West Virginia.
[2] The five states are: Kentucky, Mississippi, Nevada, Virginia, and Utah.