senate Bill S6425

2021-2022 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 (6)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
May 25, 2022 print number 6425b
May 25, 2022 amend and recommit to labor
Apr 14, 2022 print number 6425a
Apr 14, 2022 amend and recommit to labor
Jan 05, 2022 referred to labor
Apr 28, 2021 referred to labor

Sponsor's Position

This bill will protect workers from unfair restrictions on future employment and allow businesses to hire the best workers for their jobs.

S6425 - Details

See Assembly Version of this Bill:
A9591
Current Committee:
Senate Labor
Law Section:
Labor Law
Laws Affected:
Add §191-d, Lab L

S6425 - Summary

Prohibits non-compete agreements and certain restrictive covenants; authorizes employees to bring a civil action in a court of competent jurisdiction against any employer or persons alleged to have violated such prohibition.

S6425 - Sponsor Memo

S6425 - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6425
 
                        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
 
 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
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

S6425A - Details

See Assembly Version of this Bill:
A9591
Current Committee:
Senate Labor
Law Section:
Labor Law
Laws Affected:
Add §191-d, Lab L

S6425A - Summary

Prohibits non-compete agreements and certain restrictive covenants; authorizes employees to bring a civil action in a court of competent jurisdiction against any employer or persons alleged to have violated such prohibition.

S6425A - Sponsor Memo

S6425A - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6425--A
 
                        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

 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, INCLUDING  INDE-
 PENDENT CONTRACTORS.
   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.
                                                            LBD11008-02-2

Co-Sponsors

S6425B (ACTIVE) - Details

See Assembly Version of this Bill:
A9591
Current Committee:
Senate Labor
Law Section:
Labor Law
Laws Affected:
Add §191-d, Lab L

S6425B (ACTIVE) - Summary

Prohibits non-compete agreements and certain restrictive covenants; authorizes employees to bring a civil action in a court of competent jurisdiction against any employer or persons alleged to have violated such prohibition.

S6425B (ACTIVE) - Sponsor Memo

S6425B (ACTIVE) - Bill Text download pdf

 
                     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

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