Effective - 01 Jul 2001
431.202. Employment covenants enforceable, when — reasonability presumption. — 1. A reasonable covenant in writing promising not to solicit, recruit, hire or otherwise interfere with the employment of one or more employees shall be enforceable and not a restraint of trade pursuant to subsection 1 of section 416.031 if:
(1) Between two or more corporations or other business entities seeking to preserve workforce stability (which shall be deemed to be among the protectable interests of each corporation or business entity) during, and for a reasonable period following, negotiations between such corporations or entities for the acquisition of all or a part of one or more of such corporations or entities;
(2) Between two or more corporations or business entities engaged in a joint venture or other legally permissible business arrangement where such covenant seeks to protect against possible misuse of confidential or trade secret business information shared or to be shared between or among such corporations or entities;
(3) Between an employer and one or more employees seeking on the part of the employer to protect:
(a) Confidential or trade secret business information; or
(b) Customer or supplier relationships, goodwill or loyalty, which shall be deemed to be among the protectable interests of the employer; or
(4) Between an employer and one or more employees, notwithstanding the absence of the protectable interests described in subdivision (3) of this subsection, so long as such covenant does not continue for more than one year following the employee's employment; provided, however, that this subdivision shall not apply to covenants signed by employees who provide only secretarial or clerical services.
2. Whether a covenant covered by this section is reasonable shall be determined based upon the facts and circumstances pertaining to such covenant, but a covenant covered exclusively by subdivision (3) or (4) of subsection 1 of this section shall be conclusively presumed to be reasonable if its postemployment duration is no more than one year.
3. Nothing in * subdivision (3) or (4) of subsection 1 of this section is intended to create, or to affect the validity or enforceability of, employer-employee covenants not to compete.
4. Nothing in this section shall preclude a covenant described in subsection 1 of this section from being enforceable in circumstances other than those described in subdivisions (1) to (4) of subsection 1 of this section, where such covenant is reasonably necessary to protect a party's legally permissible business interests.
5. Nothing is this section shall be construed to limit an employee's ability to seek or accept employment with another employer immediately upon, or at any time subsequent to, termination of employment, whether said termination was voluntary or nonvoluntary.
6. This section shall have retrospective as well as prospective effect.
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(L. 2001 S.B. 288)
Effective 7-01-01
*Word "this" appears here in original rolls.
Structure Missouri Revised Statutes
Title XXVIII - Contracts and Contractual Relations
Chapter 431 - General Provisions as to Contracts
Section 431.010 - Private seals abolished.
Section 431.020 - Instrument of writing to import consideration — due and payable as specified.
Section 431.030 - Provisions limiting time for bringing suits prohibited.
Section 431.040 - Fraud in sale of nursery stock — damages recoverable.
Section 431.050 - Failure of nurserymen to deliver at proper time and season, contract voidable.
Section 431.055 - Persons competent to contract when eighteen years of age.
Section 431.061 - Consent to surgical or medical treatment, who may give, when.
Section 431.063 - Implied consent, when valid — lack of consent, when excused — emergency defined.
Section 431.065 - Minor spouse or parent may give consent, when.
Section 431.067 - Contracts of minors to borrow money for higher education — validity.
Section 431.070 - Contracts with counties, effect.
Section 431.080 - Suit may be instituted thereon.
Section 431.090 - County commission may appoint agent to contract for county.
Section 431.100 - Claims against county for work and labor.
Section 431.110 - Joint contracts to be construed as joint and several.
Section 431.120 - Joint debt shall survive, against whom.
Section 431.130 - Survival of debt, against whom.
Section 431.140 - Joint obligations — suit brought against whom.
Section 431.150 - Creditor may compound with one of several debtors — release — what sums.
Section 431.160 - Assignor shall not release demand, when — title of assignee.
Section 431.170 - Action against assignor by assignee, when.
Section 431.202 - Employment covenants enforceable, when — reasonability presumption.