State Codes and Statutes

Statutes > Missouri > T28 > C431 > 431_202

Employment covenants enforceable, when--reasonability presumption.

431.202. 1. A reasonable covenant in writing promising not tosolicit, recruit, hire or otherwise interfere with the employment of one ormore employees shall be enforceable and not a restraint of trade pursuantto subsection 1 of section 416.031, RSMo, if:

(1) Between two or more corporations or other business entitiesseeking to preserve workforce stability (which shall be deemed to be amongthe protectable interests of each corporation or business entity) during,and for a reasonable period following, negotiations between suchcorporations or entities for the acquisition of all or a part of one ormore of such corporations or entities;

(2) Between two or more corporations or business entities engaged ina joint venture or other legally permissible business arrangement wheresuch covenant seeks to protect against possible misuse of confidential ortrade secret business information shared or to be shared between or amongsuch corporations or entities;

(3) Between an employer and one or more employees seeking on the partof the employer to protect:

(a) Confidential or trade secret business information; or

(b) Customer or supplier relationships, goodwill or loyalty, whichshall be deemed to be among the protectable interests of the employer; or

(4) Between an employer and one or more employees, notwithstandingthe absence of the protectable interests described in subdivision (3) ofthis subsection, so long as such covenant does not continue for more thanone year following the employee's employment; provided, however, that thissubdivision shall not apply to covenants signed by employees who provideonly secretarial or clerical services.

2. Whether a covenant covered by this section is reasonable shall bedetermined based upon the facts and circumstances pertaining to suchcovenant, but a covenant covered exclusively by subdivision (3) or (4) ofsubsection 1 of this section shall be conclusively presumed to bereasonable if its postemployment duration is no more than one year.

3. Nothing in * subdivision (3) or (4) of subsection 1 of thissection is intended to create, or to affect the validity or enforceabilityof, employer-employee covenants not to compete.

4. Nothing in this section shall preclude a covenant described insubsection 1 of this section from being enforceable in circumstances otherthan those described in subdivisions (1) to (4) of subsection 1 of thissection, where such covenant is reasonably necessary to protect a party'slegally permissible business interests.

5. Nothing is this section shall be construed to limit an employee'sability to seek or accept employment with another employer immediatelyupon, or at any time subsequent to, termination of employment, whether saidtermination was voluntary or nonvoluntary.

6. This section shall have retrospective as well as prospectiveeffect.

(L. 2001 S.B. 288)

Effective 7-01-01

*Word "this" appears here in original rolls.

State Codes and Statutes

Statutes > Missouri > T28 > C431 > 431_202

Employment covenants enforceable, when--reasonability presumption.

431.202. 1. A reasonable covenant in writing promising not tosolicit, recruit, hire or otherwise interfere with the employment of one ormore employees shall be enforceable and not a restraint of trade pursuantto subsection 1 of section 416.031, RSMo, if:

(1) Between two or more corporations or other business entitiesseeking to preserve workforce stability (which shall be deemed to be amongthe protectable interests of each corporation or business entity) during,and for a reasonable period following, negotiations between suchcorporations or entities for the acquisition of all or a part of one ormore of such corporations or entities;

(2) Between two or more corporations or business entities engaged ina joint venture or other legally permissible business arrangement wheresuch covenant seeks to protect against possible misuse of confidential ortrade secret business information shared or to be shared between or amongsuch corporations or entities;

(3) Between an employer and one or more employees seeking on the partof the employer to protect:

(a) Confidential or trade secret business information; or

(b) Customer or supplier relationships, goodwill or loyalty, whichshall be deemed to be among the protectable interests of the employer; or

(4) Between an employer and one or more employees, notwithstandingthe absence of the protectable interests described in subdivision (3) ofthis subsection, so long as such covenant does not continue for more thanone year following the employee's employment; provided, however, that thissubdivision shall not apply to covenants signed by employees who provideonly secretarial or clerical services.

2. Whether a covenant covered by this section is reasonable shall bedetermined based upon the facts and circumstances pertaining to suchcovenant, but a covenant covered exclusively by subdivision (3) or (4) ofsubsection 1 of this section shall be conclusively presumed to bereasonable if its postemployment duration is no more than one year.

3. Nothing in * subdivision (3) or (4) of subsection 1 of thissection is intended to create, or to affect the validity or enforceabilityof, employer-employee covenants not to compete.

4. Nothing in this section shall preclude a covenant described insubsection 1 of this section from being enforceable in circumstances otherthan those described in subdivisions (1) to (4) of subsection 1 of thissection, where such covenant is reasonably necessary to protect a party'slegally permissible business interests.

5. Nothing is this section shall be construed to limit an employee'sability to seek or accept employment with another employer immediatelyupon, or at any time subsequent to, termination of employment, whether saidtermination was voluntary or nonvoluntary.

6. This section shall have retrospective as well as prospectiveeffect.

(L. 2001 S.B. 288)

Effective 7-01-01

*Word "this" appears here in original rolls.


State Codes and Statutes

State Codes and Statutes

Statutes > Missouri > T28 > C431 > 431_202

Employment covenants enforceable, when--reasonability presumption.

431.202. 1. A reasonable covenant in writing promising not tosolicit, recruit, hire or otherwise interfere with the employment of one ormore employees shall be enforceable and not a restraint of trade pursuantto subsection 1 of section 416.031, RSMo, if:

(1) Between two or more corporations or other business entitiesseeking to preserve workforce stability (which shall be deemed to be amongthe protectable interests of each corporation or business entity) during,and for a reasonable period following, negotiations between suchcorporations or entities for the acquisition of all or a part of one ormore of such corporations or entities;

(2) Between two or more corporations or business entities engaged ina joint venture or other legally permissible business arrangement wheresuch covenant seeks to protect against possible misuse of confidential ortrade secret business information shared or to be shared between or amongsuch corporations or entities;

(3) Between an employer and one or more employees seeking on the partof the employer to protect:

(a) Confidential or trade secret business information; or

(b) Customer or supplier relationships, goodwill or loyalty, whichshall be deemed to be among the protectable interests of the employer; or

(4) Between an employer and one or more employees, notwithstandingthe absence of the protectable interests described in subdivision (3) ofthis subsection, so long as such covenant does not continue for more thanone year following the employee's employment; provided, however, that thissubdivision shall not apply to covenants signed by employees who provideonly secretarial or clerical services.

2. Whether a covenant covered by this section is reasonable shall bedetermined based upon the facts and circumstances pertaining to suchcovenant, but a covenant covered exclusively by subdivision (3) or (4) ofsubsection 1 of this section shall be conclusively presumed to bereasonable if its postemployment duration is no more than one year.

3. Nothing in * subdivision (3) or (4) of subsection 1 of thissection is intended to create, or to affect the validity or enforceabilityof, employer-employee covenants not to compete.

4. Nothing in this section shall preclude a covenant described insubsection 1 of this section from being enforceable in circumstances otherthan those described in subdivisions (1) to (4) of subsection 1 of thissection, where such covenant is reasonably necessary to protect a party'slegally permissible business interests.

5. Nothing is this section shall be construed to limit an employee'sability to seek or accept employment with another employer immediatelyupon, or at any time subsequent to, termination of employment, whether saidtermination was voluntary or nonvoluntary.

6. This section shall have retrospective as well as prospectiveeffect.

(L. 2001 S.B. 288)

Effective 7-01-01

*Word "this" appears here in original rolls.