,i #aai? ,,congress #b;d ,session ,h4 ,r4 #ajhgi ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,octob] #bb1 #bjbf,mr4 ,khanna 7= himself & ,mrs4 ,luna7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,en]gy & ,comm]ce ,a ,,bill ,to prohibit noncompete agreem5ts = work]s ^: annual income falls bel[ specifi$ ?re%olds1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,work]s' ,"r to ,compete ,act4 #b4 ,def9ition ,9 ?is ,act3 7#a7 ,confid5tial bus9ess in=mation 7,a7 ,9 g5]al ,! t]m confid5tial bus9ess in=mation means nonpublic comm]cial1 f9ancial1 op]ational1 or propriet>y in=mation t-- 7i7 is n g5]ally kn[n or readily asc]ta9able by ! public2 7ii7 ! employ] has a legitimate bus9ess int]e/ 9 ma9ta9+ z confid5tial2 & 7iii7 is subject to reasonable measures by ! employ] to ma9ta9 its confid5tiality4 7,b7 ,exclusions ,! t]m confid5tial bus9ess in=mation does n include-- 7i7 g5]al k1 skills1 tra9+1 or exp]i5ce acquir$ by an individual dur+ employm5t2 or 7ii7 in=mation t is publicly available or o!rwise lawfully obta9$ )\t an obligation ( confid5tiality4 7#b7 ,noncompete agreem5t ,! t]m noncompete agreem5t means an agreem5t betwe5 a p]son & an individual p]=m+ "w = ! p]son1 t re/ricts su* individual1 aft] ! work+ relation%ip betwe5 ! p]son & individual t]m9ates1 f p]=m+-- 7,a7 any "w = ano!r p]son = a specifi$ p]iod ( "t2 7,b7 any "w 9 a specifi$ geographical area2 or 7,c7 any "w = ano!r p]son t is simil> to su* individual's "w = ! p]son t is a p>ty to su* agreem5t4 7#c7 ,trade secret ,! t]m trade secret has ! mean+ giv5 ! t]m 9 section #ahci ( title #ah1 ,unit$ ,/ates ,code4 #c4 ,prohibit+ noncompete agreem5ts 7a7 ,prohibition 7#a7 ,9 g5]al ,no p]son %all ent] into1 en=ce1 or attempt to en=ce a noncompete agreem5t ) any individual :o is or 0 employ$ by1 or p]=ms or previ\sly p]=m$ "w "u contract )1 su* p]son ) respect to ! activities ( su* p]son 9 or affect+ comm]ce1 if ! actual or expect$ annualiz$ rate ( ca% comp5sation f su* p]son = su* individual is less ?an #ajj1jjj1 z adju/$ annually = inflation 9 accordance ) p>agraph 7#b74 7#b7 ,inflation adju/m5t ,= ea* cal5d> ye> aft] #bjbf1 ! doll> am\nt specifi$ 9 p>agraph 7#a7 %all be increas$ by an am\nt equal to-- 7,a7 su* doll> am\nt2 multipli$ by 7,b7 ! p]c5tage by :i* ! ,consum] ,price ,index = ,all ,urban ,consum]s = ! prec$+ cal5d> ye> exce$s su* index = cal5d> ye> #bjbf4 7#c7 ,effect ( agreem5ts ,any noncompete agreem5t prohibit$ "u p>agraph 7#a7 %all be un5=ceable1 includ+ any agreem5t ent]$ into be=e ! date ( enactm5t ( ?is ,act4 7#d7 ,comp5sation det]m9ation ,= purposes ( p>agraph 7#a71 ! annualiz$ rate ( ca% comp5sation ( an individual %all be det]m9$-- 7,a7 9 ! case ( a curr5t employee or contractor1 at ! "t ! noncompete agreem5t is impos$ z a condition ( employm5t or at ! "t en=cem5t is s\ght2 & 7,b7 9 ! case ( a =m] employee or contractor1 at ! "t ! individual's employm5t or contractual relation%ip t]m9at$4 7#e7 ,v>iable comp5sation ,= purposes ( det]m9+ ! annualiz$ rate ( ca% comp5sation "u p>agraph 7#d7 ( a curr5t employee or contractor-- 7,a7 9 ! case ( an individual :o has be5 employ$ or engag$ "u contract = at lea/ #ab mon?s1 commissions1 bonuses1 & o!r v>iable ca% comp5sation %all be calculat$ bas$ on am\nt e>n$ dur+ ! prec$+ #ab mon?s2 & 7,b7 9 ! case ( an individual :o has be5 employ$ or engag$ "u contract = few] ?an #ab mon?s1 commissions1 bonuses1 & o!r v>iable ca% comp5sation %all be includ$ only to ! ext5t su* comp5sation is gu>ante$4 7b7 ,ca% comp5sation def9$ ,9 ?is section1 ! t]m ca% comp5sation means comp5sation 9 ! =m ( a sal>y1 wage1 ov]time pay1 commission1 & ca% bonus1 or fee = s]vices p]=m$ "u contract paid or payable to an individual 9 ex*ange = s]vices p]=m$ b does n include equity or equity-bas$ comp5sation or any o!r comp5sation bas$ on ! value or appreciation ( /ock1 reg>dless ( :e!r su* comp5sation is paid or settl$ 9 ca%4 #d4 ,notice 7a7 ,notice ,any p]son :o employs or contracts ) an individual describ$ 9 section #c1 or :o previ\sly employ$ or contract$ ) su* an individual & ent]$ into a noncompete agreem5t ) su* individual1 ) respect to activities 9 or affect+ comm]ce1 %all provide su* individual ) writt5 notice t any noncompete agreem5t prohibit$ "u ?is ,act is un5=ceable1 n lat] ?an-- 7#a7 #cj days aft] ! date ( enactm5t ( ?is ,act1 = an exi/+ or =m] employm5t or contractual relation%ip2 or 7#b7 #cj days aft] ! comm5cem5t ( any new employm5t or contractual relation%ip ent]$ into aft] ! date ( enactm5t ( ?is ,act4 #e4 ,en=cem5t 7a7 ,f$]al ,trade ,commission 7#a7 ,unfair or deceptive acts or practices ,a violation ( section #c or #d %all be treat$ z a violation ( a rule def9+ an unfair or deceptive act or practice prescrib$ "u section #ah7;a77#a77;,b7 ( ! ,f$]al ,trade ,commission ,act 7#ae ,u4,s4,c4 #eg;a7a77#a77;,b774 7#b7 ,p[]s ( commission 7,a7 ,9 g5]al ,! ,f$]al ,trade ,commission %all en=ce section #c & #d 9 ! same mann]1 by ! same means1 & ) ! same jurisdiction1 p[]s1 & duties z ?\gh all applicable t]ms & provisions ( ! ,f$]al ,trade ,commission ,act 7#ae ,u4,s4,c4 #da et seq47 7 incorporat$ into & made a "p ( ?is ,act4 7,b7 ,privileges & immunities ,any p]son :o violates section #c or #d %all be subject to ! p5alties & entitl$ to ! privileges & immunities provid$ 9 ! ,f$]al ,trade ,commission ,act 7#ae ,u4,s4,c4 #da et seq474 7,c7 ,au?ority pres]v$ ,no?+ 9 ?is ,act %all be con/ru$ to limit ! au?ority ( ! ,f$]al ,trade ,commission "u any o!r provision ( law4 7b7 ,en=cem5t by ,/ates 7#a7 ,9 g5]al ,9 any case 9 :i* ! attorney g5]al ( a ,/ate has reason to believe t an int]e/ ( ! resid5ts ( ! ,/ate has be5 or is ?reat5$ or adv]sely affect$ by any p]son :o violates any provision ( section #c or #d1 ! attorney g5]al ( ! ,/ate1 z p>5s patriae1 may br+ a civil action on behalf ( ! resid5ts ( ! ,/ate 9 an appropriate ,/ate c\rt or an appropriate di/rict c\rt ( ! ,unit$ ,/ates to-- 7,a7 enjo9 any fur!r su* violation by ! p]son2 7,b7 compel compliance ) section #c or #d2 7,c7 obta9 a p]man5t1 tempor>y1 or prelim9>y injunction2 7,d7 obta9 damages1 re/itution1 or o!r comp5sation on behalf ( ! resid5ts ( ! ,/ate2 or 7,e7 obta9 any o!r appropriate equitable relief4 7#b7 ,pres]vation ( ,/ate p[]s ,no?+ 9 ?is subsection %all be con/ru$ z alt]+1 limit+1 or affect+ ! au?ority ( ! attorney g5]al ( a ,/ate to-- 7,a7 br+ an action or o!r regulatory proce$+ aris+ solely "u ! laws 9 effect 9 t ,/ate2 or 7,b7 ex]cise ! p[]s conf]r$ on ! attorney g5]al by ! laws ( ! ,/ate1 includ+ ! ability to conduct inve/igations1 adm9i/] oa?s or affirmations1 or compel ! att5dance ( witnesses or ! production ( docum5t>y or o!r evid5ce4 #f4 ,no preemption ( /rong] ,/ate laws ,no?+ 9 ?is ,act %all be con/ru$ to preempt or sup]s$e any ,/ate law t provides great] protection aga9/ noncompete agreem5ts ?an ^? provid$ "u ?is ,act4 #g4 ,confid5tiality agreem5ts ,no?+ 9 ?is ,act %all prohibit a p]son f ent]+ into an agreem5t ) an individual :o is employ$ by1 or p]=ms "w "u contract )1 su* p]son ) respect to ! activities ( su* p]son 9 or affect+ comm]ce to n disclose any in=mation 7includ+ aft] ! individual is no long] employ$ or p]=m+ "w = ! p]son7 reg>d+ ! p]son1 or ! "w p]=m$ by ! individual = ! p]son1 t is a trade secret or confid5tial bus9ess in=mation4