Assembly Bill A7193

2019-2020 Legislative Session

Prohibits non-compete agreements and certain restrictive covenants

download bill text pdf

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Archive: Last Bill Status - On Floor Calendar


  • 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

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2019-A7193 (ACTIVE) - Details

See Senate Version of this Bill:
S5790
Law Section:
Labor Law
Laws Affected:
Add §191-d, Lab L
Versions Introduced in 2017-2018 Legislative Session:
A7864

2019-A7193 (ACTIVE) - Summary

Prohibits non-compete agreements and certain restrictive covenants which unreasonably and unfairly bar or inhibit post-employment competition and protects certain workers from inappropriate and unnecessary restrictions on future employment.

2019-A7193 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7193
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 11, 2019
                                ___________
 
 Introduced  by M. of A. DINOWITZ, CRESPO, TITUS, STECK -- (at request of
   the Department of Law) -- 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:
 
   Section  1.  The labor law is amended by adding a new section 191-d to
 read as follows:
   § 191-D. NON-COMPETE AGREEMENTS. 1. FOR THE PURPOSES OF THIS  SECTION,
 THE TERM:
   A.  "NON-COMPETE AGREEMENT" MEANS AN AGREEMENT, OR CLAUSE CONTAINED IN
 AN EMPLOYMENT CONTRACT, BETWEEN AN EMPLOYER AND AN EMPLOYEE THAT PROHIB-
 ITS OR RESTRICTS SUCH EMPLOYEE  FROM  OBTAINING  EMPLOYMENT,  AFTER  THE
 CONCLUSION  OF  EMPLOYMENT  WITH THE EMPLOYER INCLUDED AS A PARTY TO THE
 AGREEMENT:
   (I) FOR A SPECIFIED PERIOD OF TIME;
   (II) IN ANY SPECIFIED GEOGRAPHICAL AREA; AND/OR
   (III) WITH ANY PARTICULAR OTHER EMPLOYER OR IN ANY  PARTICULAR  INDUS-
 TRY.
   B.  "COVERED EMPLOYEE" MEANS ANY EMPLOYEE WHOSE EARNINGS ARE LESS THAN
 SEVENTY-FIVE THOUSAND DOLLARS ANNUALLY. THIS THRESHOLD SHALL BE ANNUALLY
 INCREASED, WHERE WARRANTED BY APPLICATION OF THE BELOW-DESCRIBED  FORMU-
 LA,  PURSUANT  TO  A  PERCENTAGE  TO  BE  DETERMINED BY REFERENCE TO THE
 CONSUMER PRICE INDEX, PUBLISHED BY THE UNITED  STATES  BUREAU  OF  LABOR
 STATISTICS,  FOR  THE  APPLICABLE  CALENDAR  YEAR. SAID PERCENTAGE SHALL
 EQUAL FIFTY PERCENT OF THE ANNUAL  INFLATION,  AS  DETERMINED  FROM  THE
 INCREASE  IN  THE  CONSUMER PRICE INDEX IN THE ONE-YEAR PERIOD ENDING ON
 MARCH THIRTY-FIRST PRIOR TO THE COST-OF-LIVING ADJUSTMENT  EFFECTIVE  ON
 THE ENSUING SEPTEMBER FIRST. SAID PERCENTAGE SHALL THEN BE ROUNDED UP TO
 THE  NEXT  HIGHER  ONE-TENTH  OF  ONE PERCENT AND SHALL NOT EXCEED THREE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

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