Bills · 2025-2026 Regular Session
Relating to: prohibitions on nondisparagement clauses in employment contracts.
Contracts Employment Trade practice
- Introduced, stopped here
- Passes Assembly, not reached
- Passes Senate, not reached
- Governor signs, not reached
- Law, not reached
Unfamiliar terms? Glossary
What this bill does
Plain-language analysis by the nonpartisan Legislative Reference Bureau
Under current law, a covenant by an employee or agent not to compete with his or her employer or principal during the term of the employment or agency, or after the termination of that employment or agency, within a specified territory and during a specified time (covenant not to compete) is lawful and enforceable if the restrictions imposed are reasonably necessary for the protection of the employer or principal. Currently, any covenant not to compete that imposes an unreasonable restraint on an employee or agent is illegal, void, and unenforceable even as to any part of the covenant that would be a reasonable restraint on trade.
This bill provides that a provision in an employment contract that prohibits an employee or agent from disparaging an employer or principal after the termination of the employment or agency is illegal, void, and unenforceable.
Sponsors
Full history
- Mar 19, 2026 · Assembly
Introduced by Representatives Bare, Udell, Anderson, Clancy, Goodwin, Sinicki and Stubbs; cosponsored by Senators L. Johnson and Roys
- Mar 19, 2026 · Assembly
Read first time and referred to Committee on Workforce Development, Labor, and Integrated Employment
- Mar 23, 2026 · Assembly
Failed to pass pursuant to Senate Joint Resolution 1