S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6425--B
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              April 28, 2021
                                ___________
 
 Introduced  by  Sen.  RYAN  --  read twice and ordered printed, and when
   printed to be committed to the Committee on Labor  --  recommitted  to
   the  Committee  on  Labor  in accordance with Senate Rule 6, sec. 8 --
   committee discharged, bill amended, ordered reprinted as  amended  and
   recommitted  to  said committee -- committee discharged, bill amended,
   ordered reprinted as amended and recommitted to said committee
 
 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 ANY AGREEMENT, OR  CLAUSE  CONTAINED
 IN  ANY  EMPLOYMENT  CONTRACT,  BETWEEN AN EMPLOYER AND AN EMPLOYEE THAT
 PROHIBITS OR RESTRICTS SUCH EMPLOYEE FROM  OBTAINING  EMPLOYMENT,  AFTER
 THE  CONCLUSION  OF  EMPLOYMENT WITH THE EMPLOYER INCLUDED AS A PARTY TO
 THE AGREEMENT; AND
   (B) "COVERED EMPLOYEE" MEANS ANY OTHER  PERSON  WHO,  WHETHER  OR  NOT
 EMPLOYED  UNDER  A CONTRACT OF EMPLOYMENT, PERFORMS WORK OR SERVICES FOR
 ANOTHER PERSON ON SUCH TERMS AND CONDITIONS THAT THEY ARE,  IN  RELATION
 TO THAT OTHER PERSON, IN A POSITION OF ECONOMIC DEPENDENCE ON, AND UNDER
 AN OBLIGATION TO PERFORM DUTIES FOR, THAT OTHER PERSON.
   2.  NO  EMPLOYER  OR  ITS AGENT, OR THE OFFICER OR AGENT OF ANY CORPO-
 RATION, PARTNERSHIP, OR LIMITED LIABILITY COMPANY, SHALL SEEK,  REQUIRE,
 DEMAND OR ACCEPT A NON-COMPETE AGREEMENT FROM ANY COVERED EMPLOYEE.
   3.  EVERY  CONTRACT  BY  WHICH ANYONE IS RESTRAINED FROM ENGAGING IN A
 LAWFUL PROFESSION, TRADE, OR BUSINESS OF ANY  KIND  IS  TO  THAT  EXTENT
 VOID. FOR ALL COVERED EMPLOYEES, NO EMPLOYER OR HIS OR HER AGENT, OR THE
 OFFICER  OR  AGENT  OF  ANY  CORPORATION, PARTNERSHIP, LIMITED LIABILITY
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11008-06-2
              
             
                          
                 S. 6425--B                          2
 
 COMPANY, SHALL SEEK, REQUIRE, DEMAND OR ACCEPT A  NON-COMPETE  AGREEMENT
 FROM ANY EMPLOYEE.
   4.  (A)  A  COVERED  EMPLOYEE,  MAY BRING A CIVIL ACTION IN A COURT OF
 COMPETENT JURISDICTION AGAINST ANY EMPLOYER OR PERSONS ALLEGED  TO  HAVE
 VIOLATED  THIS  SECTION.  AN EMPLOYEE SHALL BRING SUCH ACTION WITHIN TWO
 YEARS OF THE LATER OF: (I) WHEN THE PROHIBITED NON-COMPETE AGREEMENT WAS
 SIGNED; (II) WHEN THE COVERED EMPLOYEE LEARNS OF THE PROHIBITED NON-COM-
 PETE AGREEMENT; (III) WHEN THE EMPLOYMENT OR CONTRACTUAL RELATIONSHIP IS
 TERMINATED; OR (IV) WHEN THE EMPLOYER TAKES  ANY  STEP  TO  ENFORCE  THE
 NON-COMPETE  AGREEMENT.    THE COURT SHALL HAVE JURISDICTION TO VOID ANY
 SUCH NON-COMPETE AGREEMENT AND TO ORDER ALL APPROPRIATE RELIEF,  INCLUD-
 ING ENJOINING THE CONDUCT OF ANY PERSON OR EMPLOYER; ORDERING PAYMENT OF
 LIQUIDATED  DAMAGES; AND AWARDING LOST COMPENSATION, DAMAGES, REASONABLE
 ATTORNEYS' FEES AND COSTS.
   (B) FOR THE PURPOSES OF THIS SUBDIVISION, LIQUIDATED DAMAGES SHALL  BE
 CALCULATED  AS  AN  AMOUNT NOT MORE THAN TEN THOUSAND DOLLARS. THE COURT
 SHALL AWARD LIQUIDATED DAMAGES TO EVERY  EMPLOYEE  AFFECTED  UNDER  THIS
 SECTION, IN ADDITION TO ANY OTHER REMEDIES PERMITTED BY THIS SECTION.
   5.  NOTHING  IN  THIS  SECTION  SHALL  BE  CONSTRUED OR INTERPRETED AS
 AFFECTING ANY OTHER PROVISION OF FEDERAL, STATE, OR LOCAL LAW, RULE,  OR
 REGULATION  RELATING  TO  THE  ABILITY  OF  AN EMPLOYER TO ENTER INTO AN
 EMPLOYMENT CONTRACT OR OTHER WRITTEN AGREEMENT  WITH  A  PROSPECTIVE  OR
 CURRENT  EMPLOYEE  THAT  ESTABLISHES  A  MINIMUM  DURATION OF SERVICE OR
 PROHIBITS  DISCLOSURE  OF  TRADE  SECRETS,  DISCLOSURE  OF  PRIVATE  AND
 PERSONAL  CLIENT INFORMATION, OR SOLICITATION OF CLIENTS OF THE EMPLOYER
 THAT THE EMPLOYEE LEARNED ABOUT DURING EMPLOYMENT.
   § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion, section or part of this act shall be  adjudged  by  any  court  of
 competent  jurisdiction  to  be invalid, such judgment shall not affect,
 impair, or invalidate the remainder thereof, but shall  be  confined  in
 its  operation  to the clause, sentence, paragraph, subdivision, section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the legislature that this act would  have  been  enacted  even  if  such
 invalid provisions had not been included herein.
   §  3.  This  act shall take effect on the thirtieth day after it shall
 have become a law and shall be applicable to contracts entered  into  or
 modified on or after such effective date.