Bill Text: NY S04447 | 2015-2016 | General Assembly | Amended
Bill Title: Relates to the state policy against restraint of trade.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2016-01-15 - PRINT NUMBER 4447A [S04447 Detail]
Download: New_York-2015-S04447-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 4447--A 2015-2016 Regular Sessions IN SENATE March 20, 2015 ___________ Introduced by Sen. LANZA -- read twice and ordered printed, and when printed to be committed to the Committee on Labor -- recommitted to the Committee on Labor in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the labor law, in relation to the state policy against restraint of trade 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 article 33 to read 2 as follows: 3 ARTICLE 33 4 POLICY AGAINST RESTRAINT OF TRADE 5 Section 950. Policy. 6 951. Particular restraints of trade unenforceable. 7 952. Exceptions. 8 § 950. Policy. The legislature hereby reaffirms that the policy of 9 this state is to disfavor restrictive covenants in employment as consti- 10 tuting a restraint of trade. 11 § 951. Particular restraints of trade unenforceable. A covenant not to 12 compete, or non-solicitation agreement with respect to either employees 13 or customers, shall not be enforceable against a former employee no 14 longer employed by a business or independent contractor no longer in a 15 contractual relationship with the business, unless (1) the covenant is 16 reasonable in geographic extent or in time based on the circumstances of 17 the case and (2) one of the following is true: 18 (a) Such employee or independent contractor left the business volun- 19 tarily or was involuntarily terminated or discharged for misconduct; and 20 such employee or independent contractor is unique as a matter of law. An 21 employee or independent contractor is considered unique if and only if EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06922-02-6