Bill Text: NY A01278 | 2023-2024 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Prohibits non-compete agreements and certain restrictive covenants; authorizes covered individuals to bring a civil action in a court of competent jurisdiction against any employer or persons alleged to have violated such prohibition.

Spectrum: Partisan Bill (Democrat 14-0)

Status: (Introduced) 2023-06-20 - substituted by s3100a [A01278 Detail]

Download: New_York-2023-A01278-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          1278

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    January 13, 2023
                                       ___________

        Introduced by M. of A. JOYNER -- read once and referred to the Committee
          on Labor

        AN  ACT  to  amend the labor law, in relation to prohibiting non-compete
          agreements and certain restrictive covenants

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  The labor law is amended by adding a new section 191-d to
     2  read as follows:
     3    § 191-d. Non-compete agreements. 1. For the purposes of this  section,
     4  the term:
     5    (a)  "non-compete  agreement" means any agreement, or clause contained
     6  in any employment contract, between an employer  and  an  employee  that
     7  prohibits  or  restricts  such employee from obtaining employment, after
     8  the conclusion of employment with the employer included as  a  party  to
     9  the agreement; and
    10    (b)  "covered  employee"  means  any  other person who, whether or not
    11  employed under a contract of employment, performs work or  services  for
    12  another  person  on such terms and conditions that they are, in relation
    13  to that other person, in a position of economic dependence on, and under
    14  an obligation to perform duties for, that other person, including  inde-
    15  pendent contractors.
    16    2.  No  employer  or  its agent, or the officer or agent of any corpo-
    17  ration, partnership, or limited liability company, shall seek,  require,
    18  demand or accept a non-compete agreement from any covered employee.
    19    3.  Every  contract  by  which anyone is restrained from engaging in a
    20  lawful profession, trade, or business of any  kind  is  to  that  extent
    21  void. For all covered employees, no employer or his or her agent, or the
    22  officer  or  agent  of  any  corporation, partnership, limited liability
    23  company, shall seek, require, demand or accept a  non-compete  agreement
    24  from any employee.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04318-01-3
        A. 1278                             2

     1    4.  (a)  A  covered  employee,  may bring a civil action in a court of
     2  competent jurisdiction against any employer or persons alleged  to  have
     3  violated  this  section.  An employee shall bring such action within two
     4  years of the later of: (i) when the prohibited non-compete agreement was
     5  signed;  (ii)  when  the  employee  learns of the prohibited non-compete
     6  agreement; (iii) when the employment relationship is terminated; or (iv)
     7  when the employer takes any step to enforce the  non-compete  agreement.
     8  The court shall have jurisdiction to void any such non-compete agreement
     9  and  to order all appropriate relief, including enjoining the conduct of
    10  any person or employer; ordering  payment  of  liquidated  damages;  and
    11  awarding  lost  compensation,  damages,  reasonable  attorneys' fees and
    12  costs.
    13    (b) For the purposes of this subdivision, liquidated damages shall  be
    14  calculated  as  an  amount not more than ten thousand dollars. The court
    15  shall award liquidated damages to every  employee  affected  under  this
    16  section, in addition to any other remedies permitted by this section.
    17    § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
    18  sion,  section  or  part  of  this act shall be adjudged by any court of
    19  competent jurisdiction to be invalid, such judgment  shall  not  affect,
    20  impair,  or  invalidate  the remainder thereof, but shall be confined in
    21  its operation to the clause, sentence, paragraph,  subdivision,  section
    22  or part thereof directly involved in the controversy in which such judg-
    23  ment shall have been rendered. It is hereby declared to be the intent of
    24  the  legislature  that  this  act  would  have been enacted even if such
    25  invalid provisions had not been included herein.
    26    § 3. This act shall take effect on the one hundred eightieth day after
    27  it shall have become a law.