Bill > S04641

This bill prohibits non-compete agreements for most workers in New York, creating comprehensive protections for employees across various industries. The legislation defines a "non-compete agreement" as any contract that restricts an employee from obtaining employment after leaving a job, and applies to most workers except highly compensated individuals (those earning over $500,000 annually). Employers are prohibited from seeking, requiring, demanding, or accepting non-compete agreements, and any such agreements will be considered null and void. Covered individuals can bring civil actions against employers who violate this prohibition within two years of certain triggering events, with potential remedies including liquidated damages of up to $10,000, lost compensation, attorneys' fees, and other relief. The bill maintains exceptions for protecting trade secrets, confidential information, and client solicitation, and allows non-compete agreements in specific business sale scenarios. The law also preserves other existing worker protections and requires employers to post notices informing employees of their rights. Notably, the bill includes provisions preventing employers from using alternative legal strategies to circumvent its protections, such as choosing different venue or law provisions. The legislation will take effect 30 days after becoming law and will apply to contracts entered into or modified after that date.

Justice, Labor and Employment

https://www.nysenate.gov/legislation/bills/2025/S4641