Skip to Main Content
Services Talent Knowledge
Site Search
Menu

Alert

Our attorneys stay on top of changes in legislation, agency regulations, case law, and industry trends—then craft timely legal alerts to keep clients up to date on legal developments important to their business.

June 15, 2023

New York State Senate Passes Bills Banning Noncompete Agreements: What Employers Need to Know

Last week, the New York State Senate passed two bills regarding noncompete agreements, and those bills are now pending before the New York State Assembly. If the assembly passes the bills, Governor Kathy Hochul is expected to sign them into law. 

The first of the two bills, Senate Bill S3100A, would put a blanket ban on all contracts and any provisions within a contract between an employer and a covered individual that prohibit or restrict the covered individual from obtaining employment after the conclusion of employment with the employer who is a party to the agreement. The bill broadly covers all individuals who perform work or services for another. If enacted, this new law would allow an aggrieved individual to bring a civil action of up to $10,000 in liquidated damages, plus lost compensation, damages, and reasonable attorneys’ fees and costs within two years of the later of when the: (i) prohibited noncompete agreement was signed, (ii) covered individual learns of the prohibited noncompete agreement, (iii) employment or contractual relationship is terminated, or (iv) employer takes any step to enforce the noncompete agreement. If enacted, Senate Bill S3100A would take effect 30 days after being signed into law and would apply prospectively to contracts entered into or modified after it takes effect.

The second of the two bills, Senate Bill S6748, relates to actions that establish or maintain a monopoly, monopsony, or restraint of trade and would authorize class action lawsuits under the state antitrust law. If enacted, this bill would prevent employers from entering into or maintaining noncompete agreements with workers, including independent contractors, absent a “good-faith basis” to believe that a noncompete agreement is enforceable. The bill does not define what constitutes a good-faith basis. The bill also includes a provision that would preclude employers from entering into overly broad nondisclosure agreements and training-repayment obligations that would prohibit a worker from seeking or accepting other employment. Lastly, the bill would require employers to rescind existing noncompete agreements with present and former workers and notify present and former workers individually that their noncompete agreement is no longer in effect. If enacted, Senate Bill S6748 will take effect immediately. 

Barclay Damon will continue to monitor the status of these bills and any related developments.

If you have questions regarding the content of this alert, please contact Martine Wayne, associate, at mwayne@barclaydamon.com, or another member of the firm’s Labor & Employment Practice Area.
 

Subscribe

Click here to sign up for alerts, blog posts, and firm news.

Featured Media

Alerts

COVID-19 Business Interruption Update: New York High Court Affirms in Favor of Insurer

Alerts

USFWS Introduces General Permit for Bald and Golden Eagle Incidental Take

Alerts

ORES Executive Director Issues First Denial of Section 94-C Permit Application Following Applicant's Partial Loss of Site Control

Alerts

New Details About OPWDD Spending in the New York State FY 2025 Executive Budget

Alerts

Second Circuit Reverses in Favor of Insured in $600,000 Fire Loss Case

Alerts

New York State Minimum Wage Increases Are Here: Are You Compliant?

We're Growing in DC!

We’re excited to announce Barclay Damon’s combination with Washington DC–based Shapiro, Lifschitz & Schram. SLS’s 10 lawyers, three paralegals, and four administrative staff will join Barclay Damon while maintaining their current office in DC’s central business district. Our clients will benefit from SLS’s corporate, real estate, finance, and construction litigation experience and national energy-industry profile, and their clients from our full range of services.

Read More

This site uses cookies to give you the best experience possible on our site and in some cases direct advertisements to you based upon your use of our site.

By clicking [I agree], you are agreeing to our use of cookies. For information on what cookies we use and how to manage our use of cookies, please visit our Privacy Statement.

I AgreeOpt-Out