S03100 Summary:
BILL NO | S03100A |
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SAME AS | SAME AS A01278-B |
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SPONSOR | RYAN |
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COSPNSR | JACKSON, MAYER, RAMOS |
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MLTSPNSR | |
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Add 191-d, Lab L | |
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Prohibits non-compete agreements and certain restrictive covenants; authorizes covered individuals to bring a civil action in a court of competent jurisdiction against any employer or persons alleged to have violated such prohibition. |
S03100 Memo:
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S03100 Text:
Go to top STATE OF NEW YORK ________________________________________________________________________ 3100--A Cal. No. 1335 2023-2024 Regular Sessions IN SENATE January 27, 2023 ___________ Introduced by Sens. RYAN, JACKSON, MAYER -- read twice and ordered printed, and when printed to be committed to the Committee on Labor -- reported favorably from said committee, ordered to first and second report, ordered to a third reading, amended and ordered reprinted, retaining its place in the order of third reading 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 agreement, between an employer and a covered individual that 7 prohibits or restricts such covered individual from obtaining employ- 8 ment, after the conclusion of employment with the employer included as a 9 party to the agreement; and 10 (b) "covered individual" 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, limited liability company, or other entity, shall 17 seek, require, demand or accept a non-compete agreement from any covered 18 individual. 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 individuals, no employer or its agent, or the 22 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. LBD05912-03-3S. 3100--A 2 1 company, or other entity shall seek, require, demand or accept a non- 2 compete agreement from any covered individual. 3 4. (a) A covered individual, may bring a civil action in a court of 4 competent jurisdiction against any employer or persons alleged to have 5 violated this section. A covered individual shall bring such action 6 within two years of the later of: (i) when the prohibited non-compete 7 agreement was signed; (ii) when the covered individual learns of the 8 prohibited non-compete agreement; (iii) when the employment or contrac- 9 tual relationship is terminated; or (iv) when the employer takes any 10 step to enforce the non-compete agreement. The court shall have juris- 11 diction to void any such non-compete agreement and to order all appro- 12 priate relief, including enjoining the conduct of any person or employ- 13 er; ordering payment of liquidated damages; and awarding lost 14 compensation, damages, reasonable 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 covered individual affected 18 under this section, in addition to any other remedies permitted by this 19 section. 20 5. Nothing in this section shall be construed or interpreted as 21 affecting any other provision of federal, state, or local law, rule, or 22 regulation relating to the ability of an employer to enter into an 23 agreement with a prospective or current covered individual that estab- 24 lishes a fixed term of service or prohibits disclosure of trade secrets, 25 disclosure of confidential and proprietary client information, or solic- 26 itation of clients of the employer that the covered individual learned 27 about during employment, provided that such agreement does not otherwise 28 restrict competition in violation of this section. 29 6. Notwithstanding section two hundred two-k of this chapter, the 30 provisions of this section shall apply to broadcast employees as defined 31 in section two hundred two-k of this chapter; provided, however, in the 32 event that any clause, section, sentence, paragraph, subdivision, 33 section, or part of this section shall be adjudged by any court of 34 competent jurisdiction to be invalid, then section two hundred two-k 35 shall remain in effect unless similarly adjudged to be invalid. 36 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 37 sion, section or part of this act shall be adjudged by any court of 38 competent jurisdiction to be invalid, such judgment shall not affect, 39 impair, or invalidate the remainder thereof, but shall be confined in 40 its operation to the clause, sentence, paragraph, subdivision, section 41 or part thereof directly involved in the controversy in which such judg- 42 ment shall have been rendered. It is hereby declared to be the intent of 43 the legislature that this act would have been enacted even if such 44 invalid provisions had not been included herein. 45 § 3. This act shall take effect on the thirtieth day after it shall 46 have become a law and shall be applicable to contracts entered into or 47 modified on or after such effective date.