Bill Text: TX HB119 | 2021 | 87th Legislature 3rd Special Session | Introduced
Bill Title: Relating to the enforceability of a covenant not to compete with respect to certain employees discharged from employment for refusal or failure to receive a COVID-19 vaccination.
Spectrum: Partisan Bill (Republican 13-0)
Status: (Introduced - Dead) 2021-10-12 - Referred to State Affairs [HB119 Detail]
Download: Texas-2021-HB119-Introduced.html
| 87S30101 RDS-D | ||
| By: Harris | H.B. No. 119 | |
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| relating to the enforceability of a covenant not to compete with | ||
| respect to certain employees discharged from employment for refusal | ||
| or failure to receive a COVID-19 vaccination. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Section 15.50, Business & Commerce Code, is | ||
| amended by amending Subsection (a) and adding Subsection (d) to | ||
| read as follows: | ||
| (a) Notwithstanding Section 15.05 of this code, and subject | ||
| to any applicable provision of Subsection (b) or (d), a covenant not | ||
| to compete is enforceable if it is ancillary to or part of an | ||
| otherwise enforceable agreement at the time the agreement is made | ||
| to the extent that it contains limitations as to time, geographical | ||
| area, and scope of activity to be restrained that are reasonable and | ||
| do not impose a greater restraint than is necessary to protect the | ||
| goodwill or other business interest of the promisee. | ||
| (d) A covenant not to compete between an employee and an | ||
| employer is not enforceable against an employee who is discharged | ||
| from employment with the employer solely because the employee | ||
| refused or failed to receive a COVID-19 vaccination required by the | ||
| employer. For purposes of this subsection: | ||
| (1) "COVID-19" means the 2019 novel coronavirus | ||
| disease. | ||
| (2) "Employee" means an individual who is employed by | ||
| an employer for compensation. | ||
| (3) "Employer" means a person who employs one or more | ||
| employees. | ||
| SECTION 2. The change in law made by this Act applies only | ||
| to a covenant not to compete that is ancillary to or part of an | ||
| agreement entered into on or after the effective date of this Act. | ||
| A covenant not to compete that is ancillary to or part of an | ||
| agreement entered into before the effective date of this Act is | ||
| governed by the law in effect at the time the agreement was entered | ||
| into, and that law is continued in effect for that purpose. | ||
| SECTION 3. This Act takes effect on the 91st day after the | ||
| last day of the legislative session. | ||
