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A BILL TO BE ENTITLED
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AN ACT
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relating to the enforceability of a covenant not to compete with |
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respect to certain employees discharged from employment for refusal |
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or failure to receive a COVID-19 vaccination. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 15.50, Business & Commerce Code, is |
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amended by amending Subsection (a) and adding Subsection (d) to |
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read as follows: |
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(a) Notwithstanding Section 15.05 of this code, and subject |
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to any applicable provision of Subsection (b) or (d), a covenant not |
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to compete is enforceable if it is ancillary to or part of an |
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otherwise enforceable agreement at the time the agreement is made |
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to the extent that it contains limitations as to time, geographical |
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area, and scope of activity to be restrained that are reasonable and |
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do not impose a greater restraint than is necessary to protect the |
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goodwill or other business interest of the promisee. |
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(d) A covenant not to compete between an employee and an |
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employer is not enforceable against an employee who is discharged |
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from employment with the employer solely because the employee |
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refused or failed to receive a COVID-19 vaccination required by the |
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employer. For purposes of this subsection: |
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(1) "COVID-19" means the 2019 novel coronavirus |
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disease. |
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(2) "Employee" means an individual who is employed by |
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an employer for compensation. |
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(3) "Employer" means a person who employs one or more |
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employees. |
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SECTION 2. The change in law made by this Act applies only |
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to a covenant not to compete that is ancillary to or part of an |
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agreement entered into on or after the effective date of this Act. |
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A covenant not to compete that is ancillary to or part of an |
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agreement entered into before the effective date of this Act is |
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governed by the law in effect at the time the agreement was entered |
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into, and that law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect on the 91st day after the |
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last day of the legislative session. |