Jumping on the anti-noncompete bandwagon, the New York legislature has passed a measure banning noncompete agreements in the state.
Senate Bill S3100A prohibits employers from “seeking, requiring, demanding or accepting” a noncompete agreement from a “covered individual,” defined as a person “who, whether or not employed under a contract of employment, performs work or services for another person on such terms and conditions that they are, in relation to that other person, in a position of economic dependence on, and under an obligation to perform duties for, that other person.”
The term “noncompete agreement” is broadly defined to include “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.”
A covered individual would have a private right of action against an employer, with two years to bring suit within the later date of when the prohibited noncompete agreement was signed, when the covered individual learns of the prohibited noncompete agreement, when the employment or contractual relationship is terminated, or when the employer takes any step to enforce the noncompete agreement.
In addition to having jurisdiction to void the noncompete agreement at issue, the court could provide a plaintiff with liquidated damages of up to $10,000, lost compensation,...
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