From: Lane Beattie, Salt Lake Chamber
To: Stewart Barlow,
Subject: UPDATE: On Ban of Non-Compete Agreements
Date: Wed Feb 17 00:06:31 MST 2016
Body:
UPDATE: On Ban of Non-Compete Agreements
Dear Chamber Member,

I want to give you a prompt update on this morning's email regarding H.B. 251  Post Employment Restrictions Amendments. I want to clarify that the sponsor, Rep. Schultz, is working in good faith in his efforts to accommodate many of the business community's concerns with a number of stakeholders, including the Chamber. My previous note did not effectively communicate the positive nature of these ongoing negotiations. We believe these discussions have already fostered some changes, specifically addressing:
  • Codifying aspects of existing case law addressing non-competes
  • Preserving/enhancing other existing legal options for protecting business interests i.e. non-solicitation, non-disclosure agreements and employment contracts
  • Protecting non-competes related to acquisitions of a business
  • Narrowing non-competes around propriety information trades secrets, confidentiality and non-disclosures, proprietary processes and other specific business practices, in lieu of competitive enterprises

We are still awaiting language before having a full understanding of each of these changes. Again, we appreciate the robust engagement. The best help you can be at this point is with the following:

  • Document how many non-competes your company is utilizing and process for who/when you use them.
  • What would be the impact to your business if you were unable to use non-competes and why would other legal options not be adequately sufficient? You may want to include your legal counsel in this discussion as well. Please be as specific as possible and share this with our team Michael Parker (mmparker@slchamber.com) or Abby Albrecht (aalbrecht@slchamber.com).
We continue to work on a few key issues that are important to this discussion. Again, we appreciate the statesmanship of Rep. Schultz in working with us and other key stakeholders. His true intent is to support our state's economic climate and enhance the mobility of our workforce while also protecting businesses and employees from bad actors. 

We will continue to work with him to balance the interests of commerce against the inherent restraint of trade, and update you as things advance. 
 
Thank you.





Lane Beattie,
President and CEO
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