assembly Bill A7864A

2017-2018 Legislative Session

Prohibits non-compete agreements and certain restrictive covenants

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Archive: Last Bill Status - On Floor Calendar


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

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Actions

view actions (8)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 03, 2018 ordered to third reading cal.557
Jun 14, 2017 amended on third reading 7864a
Jun 12, 2017 ordered to third reading rules cal.174
rules report cal.174
reported
Jun 06, 2017 reported referred to rules
May 23, 2017 reported referred to codes
May 17, 2017 referred to labor

Co-Sponsors

A7864 - Details

Law Section:
Labor Law
Laws Affected:
Add §191-d, Lab L
Versions Introduced in 2019-2020 Legislative Session:
A7193

A7864 - 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.

A7864 - Bill Text download pdf


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

                                  7864

                       2017-2018 Regular Sessions

                          I N  A S S E M B L Y

                              May 17, 2017
                               ___________

Introduced  by M. of A. DINOWITZ, TITUS -- (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.
                                                           LBD09251-08-7

Co-Sponsors

A7864A (ACTIVE) - Details

Law Section:
Labor Law
Laws Affected:
Add §191-d, Lab L
Versions Introduced in 2019-2020 Legislative Session:
A7193

A7864A (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.

A7864A (ACTIVE) - Bill Text download pdf


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

                                 7864--A
                                                           R. R. 174

                       2017-2018 Regular Sessions

                          I N  A S S E M B L Y

                              May 17, 2017
                               ___________

Introduced  by  M.  of  A.  DINOWITZ, TITUS, STECK -- (at request of the
  Department of Law) -- read once and referred to the Committee on Labor
  -- reported and referred to the Committee on  Codes  --  reported  and
  referred  to the Committee on Rules -- amended on the special order of
  third reading, ordered reprinted as amended, retaining  its  place  on
  the special order of third reading

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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets