June 23, 2023

Click for PDF

In a major development for employers, New York is poised to ban employee non-competition agreements. Governor Kathy Hochul is currently considering a bill that was fast-tracked through the state legislature that voids “[e]very contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind.” If signed, the bill will amend the New York Labor Law to prohibit New York employers from entering into a non-compete agreement with any individual who is in a position of “economic dependence on, and under an obligation to perform duties” for an employer. Governor Hochul previously expressed support for eliminating non-compete agreements for workers making below the median wage in New York, but the bill she is considering applies to all employees in New York irrespective of compensation. If approved by the Governor, the law will be effective 30 days later.

Below, we outline the noteworthy takeaways from this likely radical change to New York law.

1. Broad Coverage. The bill broadly defines “non-compete agreement” as “any agreement, or clause contained in any agreement, between an employer and a covered individual that prohibits or restricts such covered individual from obtaining employment, after the conclusion of employment with the employer included as a party to the agreement.”[1] The definition of “covered individual” is similarly broad, defining that term as “any other person who, whether or not employed under...

Read Full Story: https://news.google.com/rss/articles/CBMiTmh0dHBzOi8vd3d3LmdpYnNvbmR1bm4uY29t...