Missouri legislation · 2026 Regular Session
Missouri HB3427: Establishes standards in regards to covenants not to compete
Status: In committee, May 15, 2026
What the bill says
To amend chapter 431, RSMo, by adding thereto one new section relating to covenants not to compete. Section A. Chapter 431, RSMo, is amended by adding thereto one new section, to be known as section 431.203, to read as follows: 431.203. 1. For purposes of this section, "covenant not to compete" means an agreement, understanding, contract, or contractual term in which an employee or prospective employee agrees not to compete against an employer or prospective employer or agrees not to accept any positions with a competitor of an employer or prospective employer following the termination of a bu.
From the introduced text:
To amend chapter 431, RSMo, by adding thereto one new section relating to covenants not to compete. Section A. Chapter 431, RSMo, is amended by adding thereto one new section, to be known as section 431.203, to read as follows: 431.203. 1. For purposes of this section, "covenant not to compete" means an agreement, understanding, contract, or contractual term in which an employee or prospective employee agrees not to compete against an employer or prospective employer or agrees not to accept any positions with a competitor of an employer or prospective employer following the termination of a business or employment relationship between the employee or prospective employee and the employer or prospective employer. A covenant not to compete may, but need not, contain time-based or geographic limitations. 2. Notwithstanding any provision of section 431.202 or any other provision of law to the contrary, a covenant not to compete shall be void and unenforceable to the extent that it applies to an employment arrangement wherein an employee is or would be paid hourly wages. ✔ EXPLANATION -- 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.
Sponsors
- Fogle, Betsy (D, 135) · primary sponsor