Bill Text: NY S06425 | 2021-2022 | General Assembly | Amended
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 2-0)
Status: (Introduced - Dead) 2022-05-25 - PRINT NUMBER 6425B [S06425 Detail]
Download: New_York-2021-S06425-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 6425--B 2021-2022 Regular Sessions IN SENATE April 28, 2021 ___________ Introduced by Sen. RYAN -- 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 -- 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. 15 2. No employer or its agent, or the officer or agent of any corpo- 16 ration, partnership, or limited liability company, shall seek, require, 17 demand or accept a non-compete agreement from any covered employee. 18 3. Every contract by which anyone is restrained from engaging in a 19 lawful profession, trade, or business of any kind is to that extent 20 void. For all covered employees, no employer or his or her agent, or the 21 officer or agent of any corporation, partnership, limited liability EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD11008-06-2S. 6425--B 2 1 company, shall seek, require, demand or accept a non-compete agreement 2 from any employee. 3 4. (a) A covered employee, may bring a civil action in a court of 4 competent jurisdiction against any employer or persons alleged to have 5 violated this section. An employee shall bring such action within two 6 years of the later of: (i) when the prohibited non-compete agreement was 7 signed; (ii) when the covered employee learns of the prohibited non-com- 8 pete agreement; (iii) when the employment or contractual relationship is 9 terminated; or (iv) when the employer takes any step to enforce the 10 non-compete agreement. The court shall have jurisdiction to void any 11 such non-compete agreement and to order all appropriate relief, includ- 12 ing enjoining the conduct of any person or employer; ordering payment of 13 liquidated damages; and awarding lost compensation, damages, reasonable 14 attorneys' fees and costs. 15 (b) For the purposes of this subdivision, liquidated damages shall be 16 calculated as an amount not more than ten thousand dollars. The court 17 shall award liquidated damages to every employee affected under this 18 section, in addition to any other remedies permitted by this section. 19 5. Nothing in this section shall be construed or interpreted as 20 affecting any other provision of federal, state, or local law, rule, or 21 regulation relating to the ability of an employer to enter into an 22 employment contract or other written agreement with a prospective or 23 current employee that establishes a minimum duration of service or 24 prohibits disclosure of trade secrets, disclosure of private and 25 personal client information, or solicitation of clients of the employer 26 that the employee learned about during employment. 27 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 28 sion, section or part of this act shall be adjudged by any court of 29 competent jurisdiction to be invalid, such judgment shall not affect, 30 impair, or invalidate the remainder thereof, but shall be confined in 31 its operation to the clause, sentence, paragraph, subdivision, section 32 or part thereof directly involved in the controversy in which such judg- 33 ment shall have been rendered. It is hereby declared to be the intent of 34 the legislature that this act would have been enacted even if such 35 invalid provisions had not been included herein. 36 § 3. This act shall take effect on the thirtieth day after it shall 37 have become a law and shall be applicable to contracts entered into or 38 modified on or after such effective date.
