Assembly Bill 1229 aims to amend existing laws regarding restrictive covenants in employment contracts, specifically addressing nondisparagement clauses. The bill renumbers and amends section 103.465, which currently governs covenants not to compete, and introduces new subsections (2) and (3). The key change is that any provision in an employment contract that prohibits an employee from disparaging their former employer after termination is deemed illegal, void, and unenforceable. This aligns with the bill's intent to prevent unreasonable restraints on trade.

Additionally, the bill mandates that employers must post a notice in conspicuous locations, including their websites, informing employees that such nondisparagement provisions are illegal. This notice must be in a form approved by the relevant department. The bill's provisions will apply to any nondisparagement clauses in employment contracts that are entered into, extended, modified, or renewed on or after the effective date of the legislation.

Statutes affected:
Bill Text: 103.465(title), 103.465