S4641-A would ban noncompete agreements for most workers, with some exceptions for high-earning employees and certain business transactions.
Despite a narrower approach than the prior version that the governor vetoed, the bill could have broad implications if enacted.
Following Governor Kathy Hochul’s highly-publicized veto of a non-compete ban in late-2023, the New York Legislature is once again considering a ban. Although the current iteration is more limited than its predecessor, the current proposal could still have a very broad reach.
Senate Bill S4641A passed the Senate in June 2025 and is currently making its way through the Assembly. If enacted, the bill would add a Section 191-d to the New York Labor Law and prohibit employers from seeking, requiring, demanding, or accepting “non-compete agreements” from "covered individuals” who earn less than a statutory threshold (initially set at $500,000 per year) and from “health-related professionals” regardless of their earnings.
The bill expressly states that it does not otherwise prohibit agreements for fixed terms, that require exclusivity during employment, that prohibit the disclosure of confidential and proprietary client information or trade secrets, and/or that prohibit the solicitation of an employer’s clients.
Key Definitions
Here are a few of the bill’s key definitions for ease of reference:
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