S T A T E O F N E W Y O R K
________________________________________________________________________
10722
I N S E N A T E
October 16, 2026
___________
Introduced by Sens. HINCHEY, FAHY -- read twice and ordered printed, and
when printed to be committed to the Committee on Rules
AN ACT to amend the labor law, in relation to prohibiting healthcare
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. HEALTHCARE NON-COMPETE AGREEMENTS. 1. FOR PURPOSES OF THIS
SECTION, THE TERM:
(A) "HEALTHCARE NON-COMPETE AGREEMENT" MEANS ANY AGREEMENT, OR CLAUSE
CONTAINED IN ANY AGREEMENT, BETWEEN AN EMPLOYER AND A COVERED HEALTHCARE
WORKER THAT PROHIBITS OR RESTRICTS SUCH COVERED HEALTHCARE WORKER FROM
OBTAINING EMPLOYMENT AFTER THE CONCLUSION OF EMPLOYMENT WITH THE EMPLOY-
ER INCLUDED AS A PARTY TO THE AGREEMENT;
(B) "COVERED HEALTHCARE WORKER" MEANS ANY PERSON HOLDING ANY OF THE
LICENSES SPECIFIED IN THIS PARAGRAPH WHO, WHETHER OR NOT EMPLOYED UNDER
A CONTRACT OF EMPLOYMENT, PERFORMS OR HAS PERFORMED 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. THE PROVISIONS
OF THIS PARAGRAPH SHALL APPLY TO PERSONS HOLDING THE FOLLOWING LICENSES:
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 THERA-
PIST LICENSED PURSUANT TO ARTICLE ONE HUNDRED THIRTY-SIX OF THE EDUCA-
TION 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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16456-02-6
S. 10722 2
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.
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 HEALTHCARE NON-COMPETE AGREEMENT FROM ANY COVERED HEALTHCARE
WORKER. ANY HEALTHCARE NON-COMPETE AGREEMENT SOUGHT, REQUIRED, DEMANDED
OR ACCEPTED AFTER THE EFFECTIVE DATE OF THIS SECTION SHALL BE NULL,
VOID, AND UNENFORCEABLE.
3. (A) A COVERED HEALTHCARE WORKER MAY BRING A CIVIL ACTION IN A COURT
OF COMPETENT JURISDICTION AGAINST ANY EMPLOYER OR PERSONS ALLEGED TO
HAVE VIOLATED THIS SECTION. A COVERED HEALTHCARE WORKER SHALL BRING SUCH
ACTION WITHIN TWO YEARS OF THE LATER OF:
(I) WHEN THE PROHIBITED HEALTHCARE NON-COMPETE AGREEMENT WAS SIGNED;
(II) WHEN THE COVERED HEALTHCARE WORKER LEARNS OF THE PROHIBITED
HEALTHCARE NON-COMPETE AGREEMENT;
(III) WHEN THE EMPLOYMENT OR CONTRACTUAL RELATIONSHIP IS TERMINATED;
OR
(IV) WHEN THE EMPLOYER TAKES ANY STEP TO ENFORCE THE HEALTHCARE NON-
COMPETE AGREEMENT.
THE COURT SHALL HAVE JURISDICTION TO VOID ANY SUCH HEALTHCARE NON-COM-
PETE AGREEMENT AND TO ORDER ALL APPROPRIATE RELIEF, INCLUDING ENJOINING
THE CONDUCT OF ANY PERSON OR EMPLOYER; ORDERING PAYMENT OF LIQUIDATED
DAMAGES; AND AWARDING LOST COMPENSATION, COMPENSATORY DAMAGES, REASON-
ABLE ATTORNEYS' FEES AND COSTS TO THE COVERED HEALTHCARE WORKER.
(B) FOR THE PURPOSES OF THIS SUBDIVISION, LIQUIDATED DAMAGES SHALL BE
CALCULATED AS AN AMOUNT NOT MORE THAN TEN THOUSAND DOLLARS PER COVERED
HEALTHCARE WORKER. THE COURT SHALL AWARD LIQUIDATED DAMAGES TO EVERY
COVERED HEALTHCARE WORKER 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 HEALTHCARE WORKERS UNDER ANY OTHER PROVISION OF
FEDERAL, STATE, OR LOCAL LAW, RULE, OR REGULATION RELATING TO THE ABILI-
TY OF AN EMPLOYER TO ENTER INTO AN AGREEMENT WITH A PROSPECTIVE OR
CURRENT COVERED HEALTHCARE WORKER THAT: (A) ESTABLISHES A FIXED TERM OF
SERVICE AND/OR EXCLUSIVITY DURING EMPLOYMENT; (B) PROHIBITS DISCLOSURE
OF TRADE SECRETS; (C) PROHIBITS DISCLOSURE OF CONFIDENTIAL AND PROPRIE-
TARY CLIENT INFORMATION; OR (D) PROHIBITS SOLICITATION OF CLIENTS OF THE
EMPLOYER; PROVIDED THAT SUCH AGREEMENTS DO NOT OTHERWISE RESTRICT COMPE-
TITION 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 HEALTHCARE 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 PART-
NERSHIP, 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
S. 10722 3
(B) ANY SUCH PERSON OR ENTITY OWNING FIFTEEN PERCENT OR MORE OWNERSHIP
INTEREST IN A BUSINESS.
7. ANY HEALTHCARE 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 HEALTHCARE 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 HEALTHCARE 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 HEALTHCARE WORKER IS AND HAS BEEN,
FOR AT LEAST THIRTY DAYS IMMEDIATELY PRECEDING SUCH COVERED HEALTHCARE
WORKER'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 HEALTHCARE NON-COMPETE AGREE-
MENTS. 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
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.
