Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|
---|---|
Jan 15, 2016 |
print number 4447a |
Jan 15, 2016 |
amend and recommit to labor |
Jan 06, 2016 |
referred to labor |
Mar 20, 2015 |
referred to labor |
Senate Bill S4447A
2015-2016 Legislative Session
Sponsored By
(R, C, IP, RFM) 24th Senate District
Archive: Last Bill Status - In Senate Committee Labor Committee
- Introduced
-
- In Committee Assembly
- In Committee Senate
-
- On Floor Calendar Assembly
- On Floor Calendar Senate
-
- Passed Assembly
- Passed Senate
- Delivered to Governor
- Signed By Governor
Actions
Bill Amendments
2015-S4447 - Details
- Current Committee:
- Senate Labor
- Law Section:
- Labor Law
- Laws Affected:
- Add Art 33 §§950 - 952, Lab L
- Versions Introduced in Other Legislative Sessions:
-
2013-2014:
S7361
2017-2018: S1589
2015-S4447 - Sponsor Memo
BILL NUMBER:S4447 TITLE OF BILL: An act to amend the labor law, in relation to the state policy against restraint of trade PURPOSE OR GENERAL IDEA OF BILL: The bill clarifies the law of non-compete agreements which has become confusing in light of the Court of Appeals decision in BDO Seidman v. Hirshberg, 93 N.Y.2d 382 (1999). That decision did not purport to replace prior law but to address a situation not clear in prior law. The decision utilizes a balancing test in which the employer's interest in enforcing the covenant is balanced against the employee's interest in earning his or her livelihood. Unfortunately, some Courts have interpreted the balancing test as applying in all cases, rather than applying only to employees who were not within categories long considered to be exempt from such restrictive covenants. The bill restores the law so that lower level employees and independent contractors cannot be subjected to restrictive covenants. SUMMARY OF PROVISIONS: The bill establishes clear categories in which restrictive covenants are not enforceable:
2015-S4447 - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 4447 2015-2016 Regular Sessions I N S E N A T E March 20, 2015 ___________ Introduced by Sen. LANZA -- read twice and ordered printed, and when printed to be committed to the Committee on Labor AN ACT to amend the labor law, in relation to the state policy against restraint of trade THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The labor law is amended by adding a new article 32 to read as follows: ARTICLE 32 POLICY AGAINST RESTRAINT OF TRADE SECTION 930. POLICY. 931. PARTICULAR RESTRAINTS OF TRADE UNENFORCEABLE. 932. EXCEPTIONS. S 930. POLICY. THE LEGISLATURE HEREBY REAFFIRMS THAT THE POLICY OF THIS STATE IS TO DISFAVOR RESTRICTIVE COVENANTS IN EMPLOYMENT AS CONSTI- TUTING A RESTRAINT OF TRADE. S 931. PARTICULAR RESTRAINTS OF TRADE UNENFORCEABLE. A COVENANT NOT TO COMPETE, OR NON-SOLICITATION AGREEMENT WITH RESPECT TO EITHER EMPLOYEES OR CUSTOMERS, SHALL NOT BE ENFORCEABLE AGAINST A FORMER EMPLOYEE NO LONGER EMPLOYED BY A BUSINESS OR INDEPENDENT CONTRACTOR NO LONGER IN A CONTRACTUAL RELATIONSHIP WITH THE BUSINESS, UNLESS (1) THE COVENANT IS REASONABLE IN GEOGRAPHIC EXTENT OR IN TIME BASED ON THE CIRCUMSTANCES OF THE CASE AND (2) ONE OF THE FOLLOWING IS TRUE: (A) SUCH EMPLOYEE OR INDEPENDENT CONTRACTOR LEFT THE BUSINESS VOLUN- TARILY OR WAS INVOLUNTARILY TERMINATED OR DISCHARGED FOR MISCONDUCT; AND SUCH EMPLOYEE OR INDEPENDENT CONTRACTOR IS UNIQUE AS A MATTER OF LAW. AN EMPLOYEE OR INDEPENDENT CONTRACTOR IS CONSIDERED UNIQUE IF AND ONLY IF HE OR SHE POSSESSES TRADE SECRETS OF THE BUSINESS OR CONFIDENTIAL MATE- RIAL THAT IS AKIN TO A TRADE SECRET. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD06922-01-5
2015-S4447A (ACTIVE) - Details
- Current Committee:
- Senate Labor
- Law Section:
- Labor Law
- Laws Affected:
- Add Art 33 §§950 - 952, Lab L
- Versions Introduced in Other Legislative Sessions:
-
2013-2014:
S7361
2017-2018: S1589
2015-S4447A (ACTIVE) - Sponsor Memo
BILL NUMBER: S4447A TITLE OF BILL : An act to amend the labor law, in relation to the state policy against restraint of trade PURPOSE OR GENERAL IDEA OF BILL : The bill clarifies the law of non-compete agreements which has become confusing in light of the Court of Appeals decision in BDO Seidman v. Hirshberg, 93 N.Y.2d 382 (1999). That decision did not purport to replace prior law but to address a situation not clear in prior law. The decision utilizes a balancing test in which the employer's interest in enforcing the covenant is balanced against the employee's interest in earning his or her livelihood. Unfortunately, some Courts have interpreted the balancing test as applying in all cases, rather than applying only to employees who were not within categories long considered to be exempt from such restrictive covenants. The bill restores the law so that lower level employees and independent contractors cannot be subjected to restrictive covenants. SUMMARY OF PROVISIONS : The bill establishes clear categories in which restrictive covenants are not enforceable:
2015-S4447A (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 4447--A 2015-2016 Regular Sessions I N S E N A T E March 20, 2015 ___________ Introduced by Sen. LANZA -- read twice and ordered printed, and when printed to be committed to the Committee on Labor -- recommitted to the Committee on Labor in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the labor law, in relation to the state policy against restraint of trade THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The labor law is amended by adding a new article 33 to read as follows: ARTICLE 33 POLICY AGAINST RESTRAINT OF TRADE SECTION 950. POLICY. 951. PARTICULAR RESTRAINTS OF TRADE UNENFORCEABLE. 952. EXCEPTIONS. S 950. POLICY. THE LEGISLATURE HEREBY REAFFIRMS THAT THE POLICY OF THIS STATE IS TO DISFAVOR RESTRICTIVE COVENANTS IN EMPLOYMENT AS CONSTI- TUTING A RESTRAINT OF TRADE. S 951. PARTICULAR RESTRAINTS OF TRADE UNENFORCEABLE. A COVENANT NOT TO COMPETE, OR NON-SOLICITATION AGREEMENT WITH RESPECT TO EITHER EMPLOYEES OR CUSTOMERS, SHALL NOT BE ENFORCEABLE AGAINST A FORMER EMPLOYEE NO LONGER EMPLOYED BY A BUSINESS OR INDEPENDENT CONTRACTOR NO LONGER IN A CONTRACTUAL RELATIONSHIP WITH THE BUSINESS, UNLESS (1) THE COVENANT IS REASONABLE IN GEOGRAPHIC EXTENT OR IN TIME BASED ON THE CIRCUMSTANCES OF THE CASE AND (2) ONE OF THE FOLLOWING IS TRUE: (A) SUCH EMPLOYEE OR INDEPENDENT CONTRACTOR LEFT THE BUSINESS VOLUN- TARILY OR WAS INVOLUNTARILY TERMINATED OR DISCHARGED FOR MISCONDUCT; AND SUCH EMPLOYEE OR INDEPENDENT CONTRACTOR IS UNIQUE AS A MATTER OF LAW. AN EMPLOYEE OR INDEPENDENT CONTRACTOR IS CONSIDERED UNIQUE IF AND ONLY IF EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD06922-02-6
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