Assembly Passes Legislation Banning Non-Compete Agreements in New York

Speaker Carl Heastie and Labor Committee Chair Latoya Joyner today announced that statewide legislation protecting employees from being required to sign a non-compete agreement with their employer has passed both houses of the Legislature and will be headed to Governor Hochul for signature. Approved by a 95 – 49 vote in the Assembly on June 20th, the legislation would ensure that New Yorkers will not be prevented from pursuing other employment opportunities because of restrictions imposed by their current employer.

“Non-compete agreements are detrimental to workers seeking employment and to our labor market and economy,” Speaker Heastie said. “By banning these agreements, we will allow New Yorkers to move on to positions that are a better fit for them or offer better benefits without worrying that they can’t seek employment elsewhere. The Assembly Majority will continue fighting to protect workers’ rights and support our economy.”

“Professionals ranging from the truck drivers who bring goods to our stores to the doctors who provide our care are increasingly subject to non-compete agreements that unfairly restrict opportunities for working New Yorkers,” Assemblymember Joyner said. “For too long non-compete agreements have been used to reduce opportunities for New Yorkers seeking to climb the ladder of economic success and led to depressed wages and compensation for those who work in a wide array of professions. Every New Yorker should have the freedom to decide which employer is the best fit for them and to make the most of the economic opportunities that are available. Clearly employers should still be able to protect trade secrets but restricting the ability of employees to pursue other employment goes too far is an excessively broad approach.”

Assemblywoman Joyner’s legislation known as the Non-Compete Prohibition Act of 2023, is Assembly Bill A. 1278-B. The Senate companion is Senate Bill S. 3100-A sponsored by state Senator Sean Ryan.