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SECOND REGULAR SESSION
HOUSE BILL NO. 3427
103RD GENERAL ASSEMBL Y
INTRODUCED BY REPRESENT A TIVE FOGLE.
5147H.01I JOSEPH ENGLER, Chief Clerk
AN ACT
T o amend chapter 431, RSMo, by adding thereto one new section relating to covenants not to
compete.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 431, RSMo, is amended by adding thereto one new section, to be
2 known as section 431.203, to read as follows:
431.203. 1. For purposes of this section, "covenant not to compete" means an
2 agr eement, understanding, contract, or contractual term in which an employee or
3 pr ospective employee agrees not to compete against an employer or pr ospective
4 employer or agrees not to accept any positions with a competitor of an employer or
5 pr ospective employer following the termination of a business or employment
6 r elationship between the employee or pr ospective employee and the employer or
7 pr ospective employer . A covenant not to compete may , but need not, contain time-based
8 or geographic limitations.
9 2. Notwithstanding any pro vision of section 431.202 or any other prov ision of
10 law to the contrary , a covenant not to compete shall be void and unenfor ceable to the
11 extent that it applies to an employment arrangement wher ein an employee is or would
12 be paid hourly wages.
✔
EXPLANA TION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
intended to be omitted from the law . Matter in bold-face type in the above bill is proposed language.