S T A T E O F N E W Y O R K
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10981
I N A S S E M B L Y
April 14, 2026
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Introduced by M. of A. BURDICK -- read once and referred to the Commit-
tee on Labor
AN ACT to amend the labor law, in relation to prohibiting non-compete
agreements for certain medical professionals
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; MEDICAL PROFESSIONALS. 1. AS USED IN
THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
(A) "COVERED HEALTH RELATED PROFESSIONAL" MEANS A PHYSICIAN LICENSED
PURSUANT TO ARTICLE ONE HUNDRED THIRTY-ONE OF THE EDUCATION LAW, A
PHYSICIAN ASSISTANT LICENSED PURSUANT TO ARTICLE ONE HUNDRED
THIRTY-ONE-B OF THE EDUCATION LAW, A CHIROPRACTOR LICENSED PURSUANT TO
ARTICLE ONE HUNDRED THIRTY-TWO OF THE EDUCATION LAW, A DENTIST LICENSED
PURSUANT TO ARTICLE ONE HUNDRED THIRTY-THREE OF THE EDUCATION LAW, A
PERFUSIONIST LICENSED PURSUANT TO ARTICLE ONE HUNDRED THIRTY-FOUR OF THE
EDUCATION LAW, A VETERINARIAN LICENSED PURSUANT TO ARTICLE ONE HUNDRED
THIRTY-FIVE OF THE EDUCATION LAW, A PHYSICAL THERAPIST LICENSED PURSUANT
TO ARTICLE ONE HUNDRED THIRTY-SIX OF THE EDUCATION LAW, A PHARMACIST
LICENSED PURSUANT TO ARTICLE ONE HUNDRED THIRTY-SEVEN OF THE EDUCATION
LAW, A NURSE LICENSED PURSUANT TO ARTICLE ONE HUNDRED THIRTY-NINE OF THE
EDUCATION LAW, A PODIATRIST LICENSED PURSUANT TO ARTICLE ONE HUNDRED
FORTY-ONE OF THE EDUCATION LAW, AN OPTOMETRIST LICENSED PURSUANT TO
ARTICLE ONE HUNDRED FORTY-THREE OF THE EDUCATION LAW, A PSYCHOLOGIST
LICENSED PURSUANT TO ARTICLE ONE HUNDRED FIFTY-THREE OF THE EDUCATION
LAW, AN OCCUPATIONAL THERAPIST LICENSED PURSUANT TO ARTICLE ONE HUNDRED
FIFTY-SIX OF THE EDUCATION LAW, A SPEECH PATHOLOGIST OR AUDIOLOGIST
LICENSED PURSUANT TO ARTICLE ONE HUNDRED FIFTY-NINE OF THE EDUCATION
LAW, OR A MENTAL HEALTH PRACTITIONER LICENSED PURSUANT TO ARTICLE ONE
HUNDRED SIXTY-THREE OF THE EDUCATION LAW.
(B)(I) "NON-COMPETE AGREEMENT" MEANS ANY AGREEMENT, OR CLAUSE
CONTAINED IN ANY AGREEMENT, BETWEEN AN EMPLOYER AND A COVERED HEALTH
RELATED PROFESSIONAL THAT:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14831-01-6
A. 10981 2
(1) PROHIBITS THE COVERED HEALTH RELATED PROFESSIONAL FROM ENGAGING IN
THE PRACTICE OF MEDICINE WITH A NEW EMPLOYER;
(2) IMPOSES FINANCIAL PENALTIES OR REPAYMENT OBLIGATIONS, OR REQUIRES
REIMBURSEMENT OF BONUSES, TRAINING EXPENSES, OR SIMILAR PAYMENTS THAT:
(A) APPLY TO A COVERED HEALTH RELATED PROFESSIONAL THAT HAS BEEN
EMPLOYED BY:
(I) A HOSPITAL;
(II) A PARENT COMPANY OF A HOSPITAL;
(III) AN AFFILIATED MANAGER OF A HOSPITAL; OR
(IV) A HOSPITAL SYSTEM; AND
(B) ARE BASED SOLELY OR PRIMARILY ON THE COVERED HEALTH RELATED
PROFESSIONAL'S DECISION TO CONTINUE ENGAGING IN THE PRACTICE OF MEDICINE
WITH A NEW EMPLOYER;
(3) REQUIRES THE COVERED HEALTH RELATED PROFESSIONAL AS A CONDITION OF
ENGAGING IN THE PRACTICE OF MEDICINE WITH A NEW EMPLOYER, REGARDLESS OF
GEOGRAPHIC AREA OR SPECIALTY, TO:
(A) OBTAIN EMPLOYER CONSENT; OR
(B) SUBMIT TO EQUITABLE RELIEF; OR
(4) IMPOSES INDIRECT RESTRICTIONS THAT HAVE THE EFFECT OF LIMITING OR
DETERRING THE COVERED HEALTH RELATED PROFESSIONAL'S PRACTICE OF MEDICINE
WITH A NEW EMPLOYER.
(II) THE TERM "NON-COMPETE AGREEMENT" DOES NOT INCLUDE NONDISCLOSURE
AGREEMENTS THAT PROTECT CONFIDENTIAL BUSINESS INFORMATION OR TRADE
SECRETS.
2. NO EMPLOYER OR ITS AGENT, OR THE OFFICER OR AGENT OF ANY CORPO-
RATION, PARTNERSHIP, LIMITED LIABILITY COMPANY, NOT-FOR-PROFIT CORPO-
RATION OR ASSOCIATION OR OTHER ENTITY, SHALL SEEK, REQUIRE, DEMAND OR
ACCEPT A NON-COMPETE AGREEMENT FROM ANY COVERED HEALTH RELATED PROFES-
SIONAL. ANY NON-COMPETE AGREEMENT SOUGHT, REQUIRED, DEMANDED OR ACCEPTED
AFTER THE EFFECTIVE DATE OF THIS SECTION SHALL BE NULL, VOID, AND UNEN-
FORCEABLE.
3. (A) A COVERED HEALTH RELATED PROFESSIONAL, MAY BRING A CIVIL ACTION
IN A COURT OF COMPETENT JURISDICTION AGAINST ANY EMPLOYER OR PERSONS
ALLEGED TO HAVE VIOLATED THIS SECTION. A COVERED HEALTH RELATED PROFES-
SIONAL SHALL BRING SUCH ACTION WITHIN TWO YEARS OF THE LATER OF: (I)
WHEN THE PROHIBITED NON-COMPETE AGREEMENT WAS SIGNED; (II) WHEN THE
COVERED HEALTH RELATED PROFESSIONAL LEARNS OF THE PROHIBITED NON-COMPETE
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, COMPENSATORY
DAMAGES, REASONABLE ATTORNEYS' FEES AND COSTS TO THE COVERED HEALTH
RELATED PROFESSIONAL.
(B) FOR THE PURPOSES OF THIS SUBDIVISION, LIQUIDATED DAMAGES SHALL BE
CALCULATED AS AN AMOUNT NOT MORE THAN TEN THOUSAND DOLLARS PER COVERED
HEALTH RELATED PROFESSIONAL. THE COURT SHALL AWARD LIQUIDATED DAMAGES TO
EVERY COVERED HEALTH RELATED PROFESSIONAL AFFECTED UNDER THIS SECTION,
IN ADDITION TO ANY OTHER REMEDIES PERMITTED BY THIS SECTION.
4. NOTHING IN THIS SECTION SHALL BE CONSTRUED OR INTERPRETED AS LIMIT-
ING THE PROTECTIONS OF INDIVIDUALS UNDER 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 HEALTH RELATED PROFESSIONAL THAT: (A) ESTABLISHES A FIXED TERM
OF SERVICE AND/OR EXCLUSIVITY DURING EMPLOYMENT; (B) PROHIBITS DISCLO-
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SURE OF TRADE SECRETS; (C) PROHIBITS DISCLOSURE OF CONFIDENTIAL AND
PROPRIETARY CLIENT INFORMATION; OR (D) PROHIBITS SOLICITATION OF CLIENTS
OF THE EMPLOYER; PROVIDED THAT SUCH AGREEMENTS DO NOT OTHERWISE RESTRICT
COMPETITION IN VIOLATION OF THIS SECTION.
5. NOTHING IN THIS SECTION SHALL BE CONSTRUED TO AMEND, MODIFY,
IMPAIR, OR OTHERWISE AFFECT THE APPLICATION OF ENFORCEMENT OF SECTION
TWO HUNDRED TWO-K OF THIS CHAPTER, NOR SHALL IT BE INTERPRETED TO CREATE
ANY CONFLICT OR INCONSISTENCY WITH SUCH PROVISION.
6. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION TO THE CONTRA-
RY, NOTHING IN THIS SECTION SHALL PROHIBIT THE INCLUSION AND ENFORCEMENT
OF NON-COMPETE AGREEMENTS OR OTHER SIMILAR COVENANTS IN THE SALE OF THE
GOODWILL OF A BUSINESS OR THE SALE OR DISPOSITION OF A MAJORITY OF AN
OWNERSHIP INTEREST IN A BUSINESS BY A PARTNER OF A PARTNERSHIP, A MEMBER
OF A LIMITED LIABILITY COMPANY, OR AN ENTITY FOR:
(A) ANY SUCH PARTNER OF A PARTNERSHIP OR MEMBER OF A LIMITED LIABILITY
COMPANY OWNING AT LEAST A FIFTEEN PERCENT INTEREST IN SUCH PARTNERSHIP
OR LIMITED LIABILITY COMPANY; OR
(B) ANY SUCH PERSON OR ENTITY OWNING FIFTEEN PERCENT OR MORE OWNERSHIP
INTEREST IN A BUSINESS.
7. ANY NON-COMPETE AGREEMENT THAT IS PERMISSIBLE OR ENFORCEABLE UNDER
THIS SECTION SHALL:
(A) MEET ALL REQUIREMENTS FOR DETERMINING ENFORCEABILITY UNDER THE
COMMON LAW OF NEW YORK, INCLUDING BUT NOT LIMITED TO: (I) IT IS REASON-
ABLE IN TIME, GEOGRAPHY, AND SCOPE; (II) IT DOES NOT IMPOSE AN UNDUE
HARDSHIP ON THE EMPLOYEE; (III) IT DOES NOT HARM THE PUBLIC; (IV) IT IS
NECESSARY TO PROTECT THE EMPLOYER'S LEGITIMATE BUSINESS INTERESTS; AND
(V) ITS RESTRICTIONS ARE NO GREATER THAN NECESSARY TO PROTECT THE LEGIT-
IMATE BUSINESS INTERESTS OF THE EMPLOYER. A NON-COMPETE AGREEMENT THAT
IS REASONABLE IN TIME PURSUANT TO SUBPARAGRAPH (I) OF THIS PARAGRAPH
SHALL NOT CONTAIN A TERM OF RESTRICTION GREATER THAN ONE YEAR; AND
(B) PROVIDE FOR THE PAYMENT OF SALARY DURING THE PERIOD OF ENFORCEMENT
OF THE NON-COMPETE AGREEMENT.
8. NO CHOICE OF LAW PROVISION OR CHOICE OF VENUE PROVISION THAT WOULD
HAVE THE EFFECT OF AVOIDING OR LIMITING THE REQUIREMENTS OF THIS SECTION
SHALL BE ENFORCEABLE IF THE COVERED HEALTH RELATED PROFESSIONAL IS AND
HAS BEEN, FOR AT LEAST THIRTY DAYS IMMEDIATELY PRECEDING THE COVERED
INDIVIDUAL'S CESSATION OF EMPLOYMENT, A RESIDENT OF NEW YORK OR EMPLOYED
IN NEW YORK, INCLUDING INDIVIDUALS WHO WORK REMOTELY IN ANOTHER STATE
BUT WHO REPORT TO A NEW YORK WORKSITE OR OFFICE OR WHO REPORT TO A NEW
YORK-BASED SUPERVISOR.
9. EVERY EMPLOYER SHALL INFORM THEIR EMPLOYEES OF THEIR PROTECTIONS
AND RIGHTS UNDER THIS SECTION BY POSTING A NOTICE THEREOF PURSUANT TO
SECTION FORTY-FIVE OF THIS CHAPTER. SUCH NOTICE SHALL BE POSTED CONSPIC-
UOUSLY IN EASILY ACCESSIBLE AND WELL-LIGHTED PLACES CUSTOMARILY
FREQUENTED BY EMPLOYEES AND APPLICANTS FOR EMPLOYMENT.
§ 2. The labor law is amended by adding a new section 45 to read as
follows:
§ 45. NOTICE TO EMPLOYEES RELATED TO NON-COMPETE AGREEMENTS. THE
DEPARTMENT SHALL BE TASKED WITH DEVELOPING A NOTICE TO INFORM EMPLOYEES
OF THEIR PROTECTIONS AND RIGHTS PURSUANT TO SECTION ONE HUNDRED NINETY-
ONE-D OF THIS CHAPTER. SUCH NOTICE SHALL BE PROVIDED TO EMPLOYERS FOR
DISTRIBUTION TO EMPLOYEES AND POSTED ON THE DEPARTMENT'S WEBSITE.
§ 3. 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
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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.
§ 4. 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 and shall have no retroactive
effect; provided, however, that section two of this act shall take
effect on the one hundred eightieth day after it shall have become a
law. Effective immediately, the addition, amendment, and/or repeal of
any rule or regulation necessary for the implementation of this act on
its effective date are authorized to be made and completed on or before
such effective date.