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.
STATE OF NEW YORK
________________________________________________________________________
1278
2023-2024 Regular Sessions
IN ASSEMBLY
January 13, 2023
___________
Introduced by M. of A. JOYNER -- read once and referred to the Committee
on Labor
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, including inde-
15 pendent contractors.
16 2. No employer or its agent, or the officer or agent of any corpo-
17 ration, partnership, or limited liability company, shall seek, require,
18 demand or accept a non-compete agreement from any covered employee.
19 3. Every contract by which anyone is restrained from engaging in a
20 lawful profession, trade, or business of any kind is to that extent
21 void. For all covered employees, no employer or his or her agent, or the
22 officer or agent of any corporation, partnership, limited liability
23 company, shall seek, require, demand or accept a non-compete agreement
24 from any employee.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04318-01-3
A. 1278 2
1 4. (a) A covered employee, may bring a civil action in a court of
2 competent jurisdiction against any employer or persons alleged to have
3 violated this section. An employee shall bring such action within two
4 years of the later of: (i) when the prohibited non-compete agreement was
5 signed; (ii) when the employee learns of the prohibited non-compete
6 agreement; (iii) when the employment relationship is terminated; or (iv)
7 when the employer takes any step to enforce the non-compete agreement.
8 The court shall have jurisdiction to void any such non-compete agreement
9 and to order all appropriate relief, including enjoining the conduct of
10 any person or employer; ordering payment of liquidated damages; and
11 awarding lost compensation, damages, reasonable attorneys' fees and
12 costs.
13 (b) For the purposes of this subdivision, liquidated damages shall be
14 calculated as an amount not more than ten thousand dollars. The court
15 shall award liquidated damages to every employee affected under this
16 section, in addition to any other remedies permitted by this section.
17 § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
18 sion, section or part of this act shall be adjudged by any court of
19 competent jurisdiction to be invalid, such judgment shall not affect,
20 impair, or invalidate the remainder thereof, but shall be confined in
21 its operation to the clause, sentence, paragraph, subdivision, section
22 or part thereof directly involved in the controversy in which such judg-
23 ment shall have been rendered. It is hereby declared to be the intent of
24 the legislature that this act would have been enacted even if such
25 invalid provisions had not been included herein.
26 § 3. This act shall take effect on the one hundred eightieth day after
27 it shall have become a law.
