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NY A02456

NY A02456
Prohibits employers from requiring low-wage employees to enter into covenants not to compete; requires employers to notify potential employees of any requirement to enter into a covenant not to compete.


summary

Introduced
01/17/2025
In Committee
01/07/2026
Crossed Over
Passed
Dead

Introduced Session

2025-2026 General Assembly

Bill Summary

AN ACT to amend the labor law, in relation to prohibiting employers from requiring low-wage employees to enter into covenants not to compete and requiring employers to notify potential employees of any requirement to enter into a covenant not to compete

AI Summary

This bill, known as the New York State Mobility and Opportunity for Vulnerable Employees (NY MOVE) Act, prohibits employers from requiring low-wage employees to sign covenants not to compete, which are agreements that restrict an employee from working for another employer in a specific geographic area, time period, or similar job. The bill defines a "low-wage employee" as someone earning less than $21.50 per hour or $44,720 annually, with provisions for annual adjustments based on inflation. Employers are prohibited from entering into non-compete agreements with low-wage employees engaged in commerce or production of goods, and must post a notice about this prohibition in a conspicuous place. For non-low-wage employees, employers must disclose any requirement to sign a non-compete agreement at the beginning of the hiring process. The bill provides enforcement mechanisms, with the commissioner empowered to investigate violations and impose civil fines up to $5,000 per employee for each violation, taking into account the employer's size and the severity of the infraction. The act will take effect immediately and apply to employees hired on or after its effective date, aiming to increase job mobility and protect low-wage workers from restrictive employment agreements.

Committee Categories

Labor and Employment

Sponsors (10)

Last Action

referred to labor (on 01/07/2026)

bill text


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