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Bill > S07437


NY S07437

NY S07437
Prohibits agreements between employers that directly restrict the current or future employment of any employee; allows for a cause of action against employers who engage in such agreements.


summary

Introduced
04/16/2025
In Committee
04/16/2025
Crossed Over
Passed
Dead

Introduced Session

2025-2026 General Assembly

Bill Summary

AN ACT to amend the general obligations law, in relation to prohibiting agreements between employers that directly restrict the current or future employment of any employee

AI Summary

This bill, known as the "End Employer Collusion Act", prohibits restrictive employment agreements between franchisors and franchisees that prevent the solicitation or hiring of employees across different franchise locations. Specifically, the bill defines a "restrictive employment agreement" as any provision in a franchise agreement that prohibits franchisees from hiring employees or former employees of the franchisor or other franchisees. Such agreements are deemed void, and individuals who have been denied employment or otherwise harmed by these agreements can sue for actual damages, potential punitive damages, and legal costs. The bill also empowers the Attorney General to take action against violations of this provision. The legislation aims to prevent anti-competitive practices that limit employee mobility and job opportunities within franchise networks, giving workers more freedom to move between franchise locations and seek employment based on their skills and preferences.

Committee Categories

Justice

Sponsors (2)

Last Action

COMMITTED TO RULES (on 06/13/2025)

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