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HB 3427

Establishes standards in regards to covenants not to compete

2026 Regular Session Introduced by Betsy Fogle

HB 3427 establishes enforceable standards limiting non-compete agreements to protect employee mobility while allowing employers reasonable restrictions on competition.

Referred: Emerging Issues(H)
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Bill Summary · HB 3427

Legislative bill overview

HB 3427 establishes legal standards and limitations on non-compete agreements in Missouri. The bill aims to regulate how employers can restrict employees from working for competitors after leaving their positions. It represents an attempt to standardize what has traditionally been a varied enforcement landscape across Missouri courts and industries.

Why is this important

Non-compete clauses directly affect worker mobility and economic opportunity, particularly impacting job changes, salary negotiations, and small business creation. Clear statutory standards would replace the current case-by-case judicial approach, providing predictability for both employers seeking to protect business interests and employees seeking career flexibility. This aligns with broader national trends—several states have recently restricted or eliminated non-competes—reflecting tensions between business protection and labor market dynamism.

Potential points of contention

  • Geographic and temporal scope limits: Disagreement likely over how restrictive non-competes can be (how many miles/months are reasonable) and whether all industries should face the same standards
  • Enforceability for different employee levels: Debate over whether restrictions should apply equally to executives versus entry-level workers, or trade secret holders versus general staff
  • Business vs. worker interests: Employers may want broad protections while labor advocates argue overly restrictive covenants trap workers and reduce wages, with legitimate middle ground uncertain

Compiled from official sources — confirm details with the bill’s official record.

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