The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1463
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 11, 2021
                                ___________
 
 Introduced  by  M.  of  A.  DINOWITZ,  REYES,  SAYEGH, GOTTFRIED, GALEF,
   STIRPE, SIMON, STECK, CRUZ, GLICK,  ZEBROWSKI,  WEPRIN,  FERNANDEZ  --
   Multi-Sponsored by -- M. of A. COOK, ENGLEBRIGHT, GRIFFIN -- read once
   and referred to the Committee on Judiciary
 
 AN  ACT to amend the general obligations law, in relation to prohibiting
   agreements between employers that directly  restrict  the  current  or
   future employment of any employee
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act shall be known  and  may  be  cited  as  the  "End
 Employer Collusion Act".
   §  2.  The  general obligations law is amended by adding a new section
 5-338 to read as follows:
   § 5-338. AGREEMENTS BETWEEN CERTAIN EMPLOYERS RESTRICTING THE  CURRENT
 OR  FUTURE  EMPLOYMENT OF AN EMPLOYEE VOID. (A) FOR THE PURPOSES OF THIS
 SECTION, THE FOLLOWING TERM  "RESTRICTIVE  EMPLOYMENT  AGREEMENT"  SHALL
 MEAN ANY AGREEMENT THAT:
   (I) IS INCLUDED IN A FRANCHISE AGREEMENT; AND
   (II) PROHIBITS OR RESTRICTS ONE OR MORE FRANCHISEES FROM SOLICITING OR
 HIRING  THE  EMPLOYEES  OR FORMER EMPLOYEES OF THE FRANCHISOR OR ANOTHER
 FRANCHISEE.
   (B) NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY,  NO  FRANCHISOR  OR
 PERSON  ACTING  ON  ITS  BEHALF  MAY  ENTER  INTO OR RENEW A RESTRICTIVE
 EMPLOYMENT AGREEMENT, ENFORCE A  RESTRICTIVE  EMPLOYMENT  AGREEMENT,  OR
 THREATEN  TO ENFORCE A RESTRICTIVE EMPLOYMENT AGREEMENT AND ANY RESTRIC-
 TIVE EMPLOYMENT AGREEMENT IS HEREBY VOID.
   (C) EVERY PERSON WHO  WAS  DENIED  EMPLOYMENT  DUE  TO  A  RESTRICTIVE
 EMPLOYMENT  AGREEMENT  OR  WAS  OTHERWISE  DAMAGED DUE TO A VIOLATION OF
 SUBDIVISION (B) OF THIS SECTION MAY MAINTAIN AN ACTION FOR DAMAGES EQUAL
 TO THE SUM OF (I) ANY ACTUAL DAMAGES SUSTAINED BY THE  INDIVIDUAL  AS  A
 RESULT  OF  SUCH  VIOLATION, (II) SUCH AMOUNT OF PUNITIVE DAMAGES AS THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD02724-01-1

 A. 1463                             2
 
 COURT MAY ALLOW, AND (III) IN THE  CASE  OF  ANY  SUCCESSFUL  ACTION  TO
 ENFORCE  ANY  LIABILITY  UNDER  THIS  SECTION,  THE  COSTS OF THE ACTION
 TOGETHER WITH REASONABLE ATTORNEY'S FEES AS DETERMINED BY THE COURT.
   (D)  WHENEVER  THE  ATTORNEY  GENERAL  BELIEVES  THAT THERE HAS BEEN A
 VIOLATION OF THIS SECTION, HE OR SHE MAY PROCEED AS PROVIDED IN SUBDIVI-
 SION TWELVE OF SECTION SIXTY-THREE OF THE EXECUTIVE LAW.
   § 3. This act shall take effect immediately.