S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3100--A
     Cal. No. 1335
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 27, 2023
                                ___________
 
 Introduced  by  Sens.  RYAN,  JACKSON,  MAYER  -- read twice and ordered
   printed, and when printed to be committed to the Committee on Labor --
   reported favorably from said committee, ordered to  first  and  second
   report,  ordered  to  a  third reading, amended and ordered reprinted,
   retaining its place in the order of third reading
 
 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  AGREEMENT,  BETWEEN  AN  EMPLOYER AND A COVERED INDIVIDUAL THAT
 PROHIBITS OR RESTRICTS SUCH COVERED INDIVIDUAL  FROM  OBTAINING  EMPLOY-
 MENT, AFTER THE CONCLUSION OF EMPLOYMENT WITH THE EMPLOYER INCLUDED AS A
 PARTY TO THE AGREEMENT; AND
   (B)  "COVERED  INDIVIDUAL"  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,  LIMITED LIABILITY COMPANY, OR OTHER ENTITY, SHALL
 SEEK, REQUIRE, DEMAND OR ACCEPT A NON-COMPETE AGREEMENT FROM ANY COVERED
 INDIVIDUAL.
   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 INDIVIDUALS, NO EMPLOYER  OR  ITS  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.
              

                                                            LBD05912-03-3
 S. 3100--A                          2
 
 COMPANY, OR OTHER ENTITY SHALL SEEK, REQUIRE, DEMAND OR  ACCEPT  A  NON-
 COMPETE AGREEMENT FROM ANY COVERED INDIVIDUAL.
   4.  (A)  A  COVERED INDIVIDUAL, MAY BRING A CIVIL ACTION IN A COURT OF
 COMPETENT JURISDICTION AGAINST ANY EMPLOYER OR PERSONS ALLEGED  TO  HAVE
 VIOLATED  THIS  SECTION.  A  COVERED  INDIVIDUAL SHALL BRING SUCH ACTION
 WITHIN TWO YEARS OF THE LATER OF: (I) WHEN  THE  PROHIBITED  NON-COMPETE
 AGREEMENT  WAS  SIGNED;  (II)  WHEN THE COVERED INDIVIDUAL LEARNS OF THE
 PROHIBITED NON-COMPETE AGREEMENT; (III) WHEN THE EMPLOYMENT OR  CONTRAC-
 TUAL  RELATIONSHIP  IS  TERMINATED;  OR (IV) WHEN THE EMPLOYER TAKES ANY
 STEP TO ENFORCE THE NON-COMPETE AGREEMENT.  THE COURT SHALL HAVE  JURIS-
 DICTION  TO  VOID ANY SUCH NON-COMPETE AGREEMENT AND TO ORDER ALL APPRO-
 PRIATE RELIEF, INCLUDING ENJOINING THE CONDUCT OF ANY PERSON OR  EMPLOY-
 ER;   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  COVERED  INDIVIDUAL  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
 AGREEMENT  WITH  A PROSPECTIVE OR CURRENT COVERED INDIVIDUAL THAT ESTAB-
 LISHES A FIXED TERM OF SERVICE OR PROHIBITS DISCLOSURE OF TRADE SECRETS,
 DISCLOSURE OF CONFIDENTIAL AND PROPRIETARY CLIENT INFORMATION, OR SOLIC-
 ITATION OF CLIENTS OF THE EMPLOYER THAT THE COVERED  INDIVIDUAL  LEARNED
 ABOUT DURING EMPLOYMENT, PROVIDED THAT SUCH AGREEMENT DOES NOT OTHERWISE
 RESTRICT COMPETITION IN VIOLATION OF THIS SECTION.
   6.  NOTWITHSTANDING  SECTION  TWO  HUNDRED  TWO-K OF THIS CHAPTER, THE
 PROVISIONS OF THIS SECTION SHALL APPLY TO BROADCAST EMPLOYEES AS DEFINED
 IN SECTION TWO HUNDRED TWO-K OF THIS CHAPTER; PROVIDED, HOWEVER, IN  THE
 EVENT  THAT  ANY  CLAUSE,  SECTION,  SENTENCE,  PARAGRAPH,  SUBDIVISION,
 SECTION, OR PART OF THIS SECTION SHALL  BE  ADJUDGED  BY  ANY  COURT  OF
 COMPETENT  JURISDICTION  TO  BE  INVALID, THEN SECTION TWO HUNDRED TWO-K
 SHALL REMAIN IN EFFECT UNLESS SIMILARLY ADJUDGED TO BE INVALID.
   § 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.