A prohibited “noncompete agreement” is “any agreement, or clause contained in any agreement, between an employer and a covered individual that prohibits or restricts such covered individual from obtaining employment, after the conclusion of employment with the employer included as a party to the agreement.” (emphasis added).The bill would create a new section of the New York Labor Law, NY Lab Law 191-d, prohibiting employers from seeking, requiring, demanding, or accepting a “noncompete agreement” from any “covered individual.” Those terms are defined broadly as follows:
The bill could be modified before the governor signs it, but if she does sign it in its current form, it would apply prospectively to agreements entered into or modified on or after its effective date. The bill, A1278B/S3100A, which previously passed the New York State Senate, would take effect 30 days after the governor signs it. On June 20, 2023, in a session scheduled after the New York State Assembly adjourned for the year, the Assembly passed significant noncompete legislation that, if signed by Governor Hochul, will prohibit employers from entering into noncompete agreements. At the conclusion of the 2023 New York legislative session, the New York State Senate and Assembly passed a bill that, if signed by New York Governor Kathy Hochul, will prohibit employers from entering agreements that prohibit or restrict covered individuals from obtaining future employment.
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