senate Bill S7361

2013-2014 Legislative Session

Relates to the state policy against restraint of trade

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Senate Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
May 14, 2014 referred to labor

S7361 - Details

See Assembly Version of this Bill:
A8409
Law Section:
Labor Law
Laws Affected:
Add Art 32 ยงยง930 - 932, Lab L

S7361 - Summary

Relates to the state policy against restraint of trade.

S7361 - Sponsor Memo

S7361 - Bill Text download pdf

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7361

                            I N  S E N A T E

                              May 14, 2014
                               ___________

Introduced  by  Sen.  AVELLA -- 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. BALANCING TEST.
  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  OR  AN
INDEPENDENT  CONTRACTOR  WHO  IS NO LONGER IN A CONTRACTUAL RELATIONSHIP
WITH THE BUSINESS, WHEN ANY ONE OF THE FOLLOWING IS TRUE:
  (A) SUCH EMPLOYEE OR INDEPENDENT CONTRACTOR  HAS  BEEN  TERMINATED  OR
DISCHARGED FOR REASONS OTHER THAN MISCONDUCT.
  (B) SUCH EMPLOYEE OR INDEPENDENT CONTRACTOR:
  (I) IS NOT UNIQUE;
  (II)  DOES  NOT POSSESS TRADE SECRETS OF THE BUSINESS OR MATERIAL THAT
IS AKIN TO A TRADE SECRET;
  (III) HAS NOT PURCHASED OR SOLD ANY PORTION OF THE BUSINESS; AND
  (IV) IS NOT A LEARNED PROFESSIONAL.
  (C) SUCH EMPLOYEE OR INDEPENDENT CONTRACTOR IS AN ATTORNEY.
  (D) THE COVENANT IS UNREASONABLE IN GEOGRAPHIC EXTENT OR  IN  DURATION
BASED ON THE CIRCUMSTANCES OF THE CASE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13245-02-3

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