Bill Text: NY S00562 | 2021-2022 | General Assembly | Introduced

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Bill Title: Prohibits agreements between employers that directly restrict the current or future employment of any employee and allows for a cause of action against employers who engage in such agreements.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2022-06-03 - COMMITTED TO RULES [S00562 Detail]

Download: New_York-2021-S00562-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                           562

                               2021-2022 Regular Sessions

                    IN SENATE

                                       (Prefiled)

                                     January 6, 2021
                                       ___________

        Introduced  by Sens. HOYLMAN, MAY -- read twice and ordered printed, and
          when printed to be committed to the Committee on Judiciary

        AN ACT to amend the general obligations law, in relation to  prohibiting
          agreements  between  employers  that  directly restrict the current or
          future employment of any employee

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

     1    Section  1.  This  act  shall  be  known  and may be cited as the "End
     2  Employer Collusion Act".
     3    § 2. The general obligations law is amended by adding  a  new  section
     4  5-338 to read as follows:
     5    §  5-338. Agreements between certain employers restricting the current
     6  or future employment of an employee void. (a) For the purposes  of  this
     7  section,  the  following  term  "restrictive employment agreement" shall
     8  mean any agreement that:
     9    (i) is included in a franchise agreement; and
    10    (ii) prohibits or restricts one or more franchisees from soliciting or
    11  hiring the employees or former employees of the  franchisor  or  another
    12  franchisee.
    13    (b)  Notwithstanding  any  other law to the contrary, no franchisor or
    14  person acting on its behalf  may  enter  into  or  renew  a  restrictive
    15  employment  agreement,  enforce  a  restrictive employment agreement, or
    16  threaten to enforce a restrictive employment agreement and any  restric-
    17  tive employment agreement is hereby void.
    18    (c)  Every  person  who  was  denied  employment  due to a restrictive
    19  employment agreement or was otherwise damaged  due  to  a  violation  of
    20  subdivision (b) of this section may maintain an action for damages equal
    21  to  the  sum  of (i) any actual damages sustained by the individual as a
    22  result of such violation, (ii) such amount of punitive  damages  as  the
    23  court  may  allow,  and  (iii)  in  the case of any successful action to

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02724-01-1
        S. 562                              2

     1  enforce any liability under  this  section,  the  costs  of  the  action
     2  together with reasonable attorney's fees as determined by the court.
     3    (d)  Whenever  the  attorney  general  believes  that there has been a
     4  violation of this section, he or she may proceed as provided in subdivi-
     5  sion twelve of section sixty-three of the executive law.
     6    § 3. This act shall take effect immediately.