Post-employment restrictive covenants.

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  • (1) Except as provided in Subsection (2) and in addition to any requirements imposed under common law, for a post-employment restrictive covenant entered into on or after May 10, 2016, an employer and an employee may not enter into a post-employment restrictive covenant for a period of more than one year from the day on which the employee is no longer employed by the employer. A post-employment restrictive covenant that violates this subsection is void.
  • (2)
    • (a) Subject to Subsection (2)(b), a post-employment restrictive covenant between a broadcasting company and a broadcasting employee is valid only if:
      • (i) the broadcasting employee is an exempt broadcasting employee;
      • (ii) the post-employment restrictive covenant is part of a written employment contract of reasonable duration, based on industry standards, the position, the broadcasting employee's experience, geography, and the parties' unique circumstances; and
      • (iii)
        • (A) the broadcasting company terminates the broadcasting employee for cause; or
        • (B) the broadcasting employee breaches the employment contract in a manner that results in the broadcasting employee no longer being employed by the broadcasting company.
    • (b) A post-employment restrictive covenant described in Subsection (2)(a) is enforceable for no longer than the earlier of:
      • (i) one year after the day on which the broadcasting employee is no longer employed by the broadcasting company; or
      • (ii) the day on which the original term of the employment contract containing the post-employment restrictive covenant ends.
    • (c) A post-employment restrictive covenant between a broadcasting company and a broadcasting employee that does not comply with this subsection is void.




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