On June 20, 2023, the New York State Legislature passed a bill, which would ban the creation and enforcement of non-compete clauses in agreements with covered individuals. The bill now awaits Governor Hochul's signature. If signed, New York employers will be prohibited from enforcing non-competition agreements signed after the law takes effect. This legislation comes on the heels of other states enacting restrictions on non-competes and the federal government proposing a nationwide ban on non-competes.
The New York Bill
The New York State Assembly and Senate passed a bill that has been sent to Governor Hochul for her consideration (collectively, the "Bill"). If signed by the Governor, the Bill will become effective within 30 days after signed into law and would make it unlawful for an employer to "seek, require, demand, or accept" a non-compete clause. It would also void the entirety of any agreement entered into after the effective date that contains a non-compete clause. In addition, the Bill creates a private right of action for a covered individual to bring a civil suit against an employer who has allegedly violated the non-compete ban.
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