Takeaways

• A bill to ban employment non-competes for all but highly compensated individuals is being considered by the New York state legislature.
• Gov. Hochul vetoed a similar bill in 2023, and the latest proposal appears to respond to the veto memo.
• If passed, the ban will be go into effect 30 days after it is signed by the governor and apply only to new or modified non-competes, not retroactively.

Related links

• NY State Senate Bill 2025-S4641
• New York Non-Compete Ban Goes to Governor
• A Step Too Far? Governor Hochul Vetoes New York Non-Compete Ban

Article

A bill introduced in the New York State Senate on Feb. 10, 2025, would prohibit nearly all non-compete agreements arising in employment. Consistent with a national trend, non-competes for healthcare professionals would be banned.

The sponsor of the latest proposal (S4641), State Sen. Sean Ryan, also sponsored the 2023 bill that sought a broad ban on all non-competes. The legislature passed the 2023 bill, but Gov. Kathy Hochul vetoed it.

S4641 would add New York Labor Law Section 191-d, “Non-compete agreements.” The section contains definitions and prohibitions and creates a private cause of action. S4641 would go into effect 30 days after becoming law and be applicable to contracts entered into or modified on or after the effective date. The bill does not appear to require retroactive application or void existing non-compete agreements.

Definitions

Section 191-d defines the following terms:

• “Non-compete agreement”...

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