senate Bill S5790

2019-2020 Legislative Session

Prohibits non-compete agreements and certain restrictive covenants

download bill text pdf

Sponsored By

Current Bill Status - In Senate Committee Labor Committee


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

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Actions

view actions (2)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2020 referred to labor
May 15, 2019 referred to labor

Co-Sponsors

S5790 (ACTIVE) - Details

See Assembly Version of this Bill:
A7193
Current Committee:
Senate Labor
Law Section:
Labor Law
Laws Affected:
Add §191-d, Lab L
Versions Introduced in 2017-2018 Legislative Session:
A7864

S5790 (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.

S5790 (ACTIVE) - Sponsor Memo

S5790 (ACTIVE) - Bill Text download pdf


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

                                  5790

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                              May 15, 2019
                               ___________

Introduced by Sen. RAMOS -- (at request of the Attorney General) -- 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  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.

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