Assembly Bill A1278A

Vetoed By Governor
2023-2024 Legislative Session

Prohibits non-compete agreements and certain restrictive covenants

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Sponsored By

Current Bill Status Via S3100 - Vetoed by Governor


  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Vetoed By Governor
  • Signed By Governor

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Bill Amendments

co-Sponsors

multi-Sponsors

2023-A1278 - Details

Law Section:
Labor Law
Laws Affected:
Add §191-d, Lab L
Versions Introduced in 2021-2022 Legislative Session:
A9591

2023-A1278 - Summary

Prohibits non-compete agreements and certain restrictive covenants; authorizes covered individuals to bring a civil action in a court of competent jurisdiction against any employer or persons alleged to have violated such prohibition.

2023-A1278 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1278
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 13, 2023
                                ___________
 
 Introduced by M. of A. JOYNER -- 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 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04318-01-3
 A. 1278                             2
              

co-Sponsors

multi-Sponsors

2023-A1278A - Details

Law Section:
Labor Law
Laws Affected:
Add §191-d, Lab L
Versions Introduced in 2021-2022 Legislative Session:
A9591

2023-A1278A - Summary

Prohibits non-compete agreements and certain restrictive covenants; authorizes covered individuals to bring a civil action in a court of competent jurisdiction against any employer or persons alleged to have violated such prohibition.

2023-A1278A - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1278--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 13, 2023
                                ___________
 
 Introduced  by  M.  of  A. JOYNER, BORES, BURDICK, SIMON, ARDILA, REYES,
   TAYLOR, GIBBS, LUNSFORD, WALKER -- Multi-Sponsored  by  --  M.  of  A.
   SEAWRIGHT  --  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 AGREEMENT, BETWEEN AN EMPLOYER  AND  A  COVERED  INDIVIDUAL  THAT
 PROHIBITS  OR  RESTRICTS  SUCH COVERED INDIVIDUAL FROM OBTAINING EMPLOY-
 MENT, AFTER THE CONCLUSION OF EMPLOYMENT WITH THE EMPLOYER INCLUDED AS A
 PARTY TO THE AGREEMENT; AND
   (B) "COVERED INDIVIDUAL" 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.
   2.  NO  EMPLOYER  OR  ITS AGENT, OR THE OFFICER OR AGENT OF ANY CORPO-
 RATION, PARTNERSHIP, LIMITED LIABILITY COMPANY, OR OTHER  ENTITY,  SHALL
 SEEK, REQUIRE, DEMAND OR ACCEPT A NON-COMPETE AGREEMENT FROM ANY COVERED
 INDIVIDUAL.
   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  INDIVIDUALS,  NO EMPLOYER OR ITS AGENT, OR THE
 OFFICER OR AGENT OF  ANY  CORPORATION,  PARTNERSHIP,  LIMITED  LIABILITY
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04318-02-3
              

co-Sponsors

multi-Sponsors

2023-A1278B (ACTIVE) - Details

Law Section:
Labor Law
Laws Affected:
Add §191-d, Lab L
Versions Introduced in 2021-2022 Legislative Session:
A9591

2023-A1278B (ACTIVE) - Summary

Prohibits non-compete agreements and certain restrictive covenants; authorizes covered individuals to bring a civil action in a court of competent jurisdiction against any employer or persons alleged to have violated such prohibition.

2023-A1278B (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1278--B
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 13, 2023
                                ___________
 
 Introduced  by  M.  of  A. JOYNER, BORES, BURDICK, SIMON, ARDILA, REYES,
   TAYLOR, GIBBS, LUNSFORD, WALKER, L. ROSENTHAL -- Multi-Sponsored by --
   M. of A.  SEAWRIGHT -- read once and  referred  to  the  Committee  on
   Labor  --  committee  discharged,  bill  amended, ordered reprinted as
   amended and recommitted to said committee -- reported and referred  to
   the  Committee  on  Codes -- reported and referred to the Committee on
   Rules -- Rules Committee discharged, bill amended,  ordered  reprinted
   as amended and recommitted to the Committee on Rules
 
 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 AGREEMENT, BETWEEN AN EMPLOYER  AND  A  COVERED  INDIVIDUAL  THAT
 PROHIBITS  OR  RESTRICTS  SUCH COVERED INDIVIDUAL FROM OBTAINING EMPLOY-
 MENT, AFTER THE CONCLUSION OF EMPLOYMENT WITH THE EMPLOYER INCLUDED AS A
 PARTY TO THE AGREEMENT; AND
   (B) "COVERED INDIVIDUAL" 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.
   2.  NO  EMPLOYER  OR  ITS AGENT, OR THE OFFICER OR AGENT OF ANY CORPO-
 RATION, PARTNERSHIP, LIMITED LIABILITY COMPANY, OR OTHER  ENTITY,  SHALL
 SEEK, REQUIRE, DEMAND OR ACCEPT A NON-COMPETE AGREEMENT FROM ANY COVERED
 INDIVIDUAL.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04318-03-3
 A. 1278--B                          2
              

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