Bill Text: NY A09591 | 2021-2022 | General Assembly | Amended

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Bill Title: Prohibits non-compete agreements and certain restrictive covenants; authorizes employees 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 5-0)

Status: (Introduced - Dead) 2022-05-20 - print number 9591a [A09591 Detail]

Download: New_York-2021-A09591-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         9591--A

                   IN ASSEMBLY

                                     March 17, 2022
                                       ___________

        Introduced  by M. of A. JOYNER, O'DONNELL, SIMON, COLTON, DAVILA -- read
          once and referred to the Committee on Labor --  committee  discharged,
          bill  amended,  ordered  reprinted  as amended and recommitted to said
          committee

        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.
    25    4. (a) A covered employee, may bring a civil  action  in  a  court  of
    26  competent  jurisdiction  against any employer or persons alleged to have

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11008-03-2
        A. 9591--A                          2

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