senate Bill S734

2021-2022 Legislative Session

Prohibits non-compete agreements

download bill text pdf

Sponsored By

Current Bill Status - Stricken


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

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Actions

view actions (3)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jul 22, 2022 recommit, enacting clause stricken
Jan 05, 2022 referred to labor
Jan 06, 2021 referred to labor

S734 (ACTIVE) - Details

Current Committee:
Law Section:
Labor Law
Laws Affected:
Add §191-d, Lab L
Versions Introduced in 2019-2020 Legislative Session:
S8274

S734 (ACTIVE) - Summary

Prohibits non-compete agreements; provides that a non-compete agreement is only enforceable if such agreement: is no greater than required for the protection of the legitimate interest of the employer; does not impose an undue hardship on the employee; is not injurious to the public (view more) and is reasonable in time period and geographic scope; makes related provisions.

S734 (ACTIVE) - Sponsor Memo

S734 (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    734
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by  Sen.  BIAGGI -- 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
 
   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. "UNDUE HARDSHIP" INCLUDES BUT, IS NOT LIMITED TO, SITUATIONS  WHERE
 AN  EMPLOYEE  LOSES  OR  LEAVES A JOB DUE TO CIRCUMSTANCES SURROUNDING A
 DECLARED STATE OF  EMERGENCY  OR  DISASTER  EMERGENCY  AS  DESCRIBED  IN
 SECTION TWENTY-FOUR OR TWENTY-EIGHT OF THE EXECUTIVE LAW.
   2. A NON-COMPETE AGREEMENT IS ONLY ENFORCEABLE IF SUCH AGREEMENT:
   (A)  IS  NO GREATER THAN REQUIRED FOR THE PROTECTION OF THE LEGITIMATE
 INTEREST OF THE EMPLOYER;
   (B) DOES NOT IMPOSE AN UNDUE HARDSHIP ON THE EMPLOYEE;
   (C) IS NOT INJURIOUS TO THE PUBLIC; AND
   (D) IS REASONABLE IN TIME PERIOD AND GEOGRAPHIC SCOPE.
   IF ANY OF THE PROVISIONS OF PARAGRAPH (A), (B), (C)  OR  (D)  OF  THIS
 SUBDIVISION IS VIOLATED, THE NON-COMPETE AGREEMENT IS DEEMED INVALID.
   § 2. This act shall take effect immediately.

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