S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  9591--A
 
                           I N  A S S E M B L Y
 
                              March 17, 2022
                                ___________
 
 Introduced  by M. of A. JOYNER, O'DONNELL, SIMON, COLTON, DAVILA -- read
   once and referred to the Committee on Labor --  committee  discharged,
   bill  amended,  ordered  reprinted  as amended and recommitted to said
   committee
 
 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 ANY AGREEMENT, OR  CLAUSE  CONTAINED
 IN  ANY  EMPLOYMENT  CONTRACT,  BETWEEN AN EMPLOYER AND AN EMPLOYEE THAT
 PROHIBITS OR RESTRICTS SUCH EMPLOYEE FROM  OBTAINING  EMPLOYMENT,  AFTER
 THE  CONCLUSION  OF  EMPLOYMENT WITH THE EMPLOYER INCLUDED AS A PARTY TO
 THE AGREEMENT; AND
   (B) "COVERED EMPLOYEE" MEANS ANY OTHER  PERSON  WHO,  WHETHER  OR  NOT
 EMPLOYED  UNDER  A CONTRACT OF EMPLOYMENT, PERFORMS WORK OR SERVICES FOR
 ANOTHER PERSON ON SUCH TERMS AND CONDITIONS THAT THEY ARE,  IN  RELATION
 TO THAT OTHER PERSON, IN A POSITION OF ECONOMIC DEPENDENCE ON, AND UNDER
 AN  OBLIGATION TO PERFORM DUTIES FOR, THAT OTHER PERSON, INCLUDING INDE-
 PENDENT CONTRACTORS.
   2. NO EMPLOYER OR ITS AGENT, OR THE OFFICER OR  AGENT  OF  ANY  CORPO-
 RATION,  PARTNERSHIP, OR LIMITED LIABILITY COMPANY, SHALL SEEK, REQUIRE,
 DEMAND OR ACCEPT A NON-COMPETE AGREEMENT FROM ANY COVERED EMPLOYEE.
   3. EVERY CONTRACT BY WHICH ANYONE IS RESTRAINED  FROM  ENGAGING  IN  A
 LAWFUL  PROFESSION,  TRADE,  OR  BUSINESS  OF ANY KIND IS TO THAT EXTENT
 VOID. FOR ALL COVERED EMPLOYEES, NO EMPLOYER OR HIS OR HER AGENT, OR THE
 OFFICER OR AGENT OF  ANY  CORPORATION,  PARTNERSHIP,  LIMITED  LIABILITY
 COMPANY,  SHALL  SEEK, REQUIRE, DEMAND OR ACCEPT A NON-COMPETE AGREEMENT
 FROM ANY EMPLOYEE.
   4. (A) A COVERED EMPLOYEE, MAY BRING A CIVIL  ACTION  IN  A  COURT  OF
 COMPETENT  JURISDICTION  AGAINST ANY EMPLOYER OR PERSONS ALLEGED TO HAVE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11008-03-2
 A. 9591--A                          2
 
 VIOLATED THIS SECTION. AN EMPLOYEE SHALL BRING SUCH  ACTION  WITHIN  TWO
 YEARS OF THE LATER OF: (I) WHEN THE PROHIBITED NON-COMPETE AGREEMENT WAS
 SIGNED;  (II)  WHEN  THE  EMPLOYEE  LEARNS OF THE PROHIBITED NON-COMPETE
 AGREEMENT; (III) WHEN THE EMPLOYMENT RELATIONSHIP IS TERMINATED; OR (IV)
 WHEN  THE  EMPLOYER TAKES ANY STEP TO ENFORCE THE NON-COMPETE AGREEMENT.
 THE COURT SHALL HAVE JURISDICTION TO VOID ANY SUCH NON-COMPETE AGREEMENT
 AND TO ORDER ALL APPROPRIATE RELIEF, INCLUDING ENJOINING THE CONDUCT  OF
 ANY  PERSON  OR  EMPLOYER;  ORDERING  PAYMENT OF LIQUIDATED DAMAGES; AND
 AWARDING LOST COMPENSATION,  DAMAGES,  REASONABLE  ATTORNEYS'  FEES  AND
 COSTS.
   (B)  FOR THE PURPOSES OF THIS SUBDIVISION, LIQUIDATED DAMAGES SHALL BE
 CALCULATED AS AN AMOUNT NOT MORE THAN TEN THOUSAND  DOLLARS.  THE  COURT
 SHALL  AWARD  LIQUIDATED  DAMAGES  TO EVERY EMPLOYEE AFFECTED UNDER THIS
 SECTION, IN ADDITION TO ANY OTHER REMEDIES PERMITTED BY THIS SECTION.
   § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion, section or part of this act shall be  adjudged  by  any  court  of
 competent  jurisdiction  to  be invalid, such judgment shall not affect,
 impair, or invalidate the remainder thereof, but shall  be  confined  in
 its  operation  to the clause, sentence, paragraph, subdivision, section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the legislature that this act would  have  been  enacted  even  if  such
 invalid provisions had not been included herein.
   § 3. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.