|Assembly Actions - Lowercase
Senate Actions - UPPERCASE
|Jan 08, 2020||referred to labor|
|May 15, 2019||referred to labor|
senate Bill S5790
Current Bill Status - In Senate Committee Labor Committee
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed/Vetoed by Governor
S5790 (ACTIVE) - Details
S5790 (ACTIVE) - Sponsor Memo
BILL NUMBER: S5790 SPONSOR: RAMOS TITLE OF BILL: An act to amend the labor law, in relation to prohib- iting non-compete agreements and certain restrictive covenants PURPOSE OR GENERAL IDEA OF BILL: The bill would clarify and update New York labor law regarding the permissible use of non-compete agreements in employment contracts. SUMMARY OF SPECIFIC PROVISIONS: Section 1, which adds a new section 191-d to the labor law, is divided as follows: Subsection 1: Defines "non-compete agreement" and "covered-employee." Subsection 2: Provides that no employer or its agent, or the officer or agent of any corporation, partnership, or limited liability company, shall seek, require, demand or accept a non-compete agreement from a
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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