Post-Employment Non-Competes May Soon Be Prohibited in New York
In the wake of the Federal Trade Commission's (FTC) proposed nationwide ban on the use of non-compete agreements, the General Counsel of the National Labor Relations Board's memorandum declaring most non-competes to be in violation of federal labor law, and other states recently enacting measures that ban or limit the use of non-competes, the New York legislature officially joined the fray by proposing its own ban on employee non-compete agreements. This article takes a closer look at the potential impact.
July 03, 2023 at 10:00 AM
8 minute read
On June 20, 2023, the New York State Assembly voted to approve Bill No. S.3100A/A.1278B, which, if enacted, would ban all post-employment non-compete agreements entered into between employers and employees in New York.
Brian Kaplan
The bill, which also passed the New York State Senate, will next be sent to Governor Kathy Hochul. If enacted in its current form, the law would go into effect 30 days after the Governor's signature and would apply prospectively to non-competes entered into or modified on or after its effective date.
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