Potential Hostile Territory in Shifting Non-Compete Landscape
Pending legislation in New York will result in the sharp curtailment of post-employment non-competes. For the moment, it is unclear whether the current (or any) form of the bill may be passed into law. This article discusses this pending legislation and its potential impact on employers statewide.
August 24, 2023 at 10:00 AM
6 minute read
Over the opening months of 2023, several significant governmental actions intended to chill the use of non-competes have taken place, including (i) the FTC's notice of its intention to propose a ban on non-competes, (ii) the NLRB's General Counsel opining that certain non-competes violate the National Labor Relations Act, and (iii) Minnesota's banning of non-competes. Most recently, New York's Legislature has taken action to curtail usage of the controversial restrictive covenants.
On June 7, the New York Senate passed Senate bill S3100A ("the bill"). Shortly thereafter, on June 20, 2023, the New York State Assembly passed the bill by a 95-to-49 vote at a special assembly session. The fate of the bill will next be decided at Governor Kathy Hochul's desk, where she may sign, veto, revise, or fail to act upon it.
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