Bill Text: NY S00734 | 2021-2022 | General Assembly | Introduced

New York Senate Bill 734 (Prior Session Legislation)

Introduced

Bill Title: Prohibits non-compete agreements; provides that a non-compete agreement is only enforceable if such agreement: is no greater than required for the protection of the legitimate interest of the employer; does not impose an undue hardship on the employee; is not injurious to the public; and is reasonable in time period and geographic scope; makes related provisions.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-07-22 - RECOMMIT, ENACTING CLAUSE STRICKEN [S00734 Detail]

Download: New_York-2021-S00734-Introduced.html




                STATE OF NEW YORK
        ________________________________________________________________________

                                           734

                               2021-2022 Regular Sessions

                    IN SENATE

                                       (Prefiled)

                                     January 6, 2021
                                       ___________

        Introduced  by  Sen.  BIAGGI -- read twice and ordered printed, and when
          printed to be committed to the Committee on Labor

        AN ACT to amend the labor law, in relation  to  prohibiting  non-compete
          agreements

          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 an agreement, or clause contained  in
     6  an employment contract, between an employer and an employee that prohib-
     7  its  or  restricts  such  employee  from obtaining employment, after the
     8  conclusion of employment with the employer included as a  party  to  the
     9  agreement:
    10    (i) for a specified period of time;
    11    (ii) in any specified geographical area; and/or
    12    (iii)  with  any particular other employer or in any particular indus-
    13  try.
    14    b. "Undue hardship" includes but, is not limited to, situations  where
    15  an  employee  loses  or  leaves a job due to circumstances surrounding a
    16  declared state of  emergency  or  disaster  emergency  as  described  in
    17  section twenty-four or twenty-eight of the executive law.
    18    2. A non-compete agreement is only enforceable if such agreement:
    19    (a)  is  no greater than required for the protection of the legitimate
    20  interest of the employer;
    21    (b) does not impose an undue hardship on the employee;
    22    (c) is not injurious to the public; and
    23    (d) is reasonable in time period and geographic scope.
    24    If any of the provisions of paragraph (a), (b), (c)  or  (d)  of  this
    25  subdivision is violated, the non-compete agreement is deemed invalid.
    26    § 2. This act shall take effect immediately.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02974-01-1