Bill > A10023

This bill prohibits employers from using "non-compete agreements," which are contracts or clauses that prevent an employee from working for another company after their employment ends, with some exceptions for highly compensated individuals (earning over $500,000 annually, adjusted for inflation) and in specific business sale scenarios. The bill defines a "covered individual" as someone economically dependent on their employer and obligated to perform duties for them, excluding those highly compensated individuals and certain health-related professionals. Employers are forbidden from seeking, requiring, or accepting these agreements from covered individuals or health-related professionals, and any such agreements made after the bill's effective date will be void and unenforceable. Covered individuals can sue employers who violate this prohibition, seeking to void the agreement and recover damages, including lost compensation, attorneys' fees, and costs, with liquidated damages of up to $10,000 also being awarded. The bill also clarifies that it does not prohibit agreements that establish fixed terms of service, protect trade secrets or confidential client information, or prevent client solicitation, as long as they don't otherwise restrict competition. Employers are required to post a notice informing employees of their rights under this new law, and the Department of Labor will develop this notice. The bill takes effect 30 days after becoming law for contracts entered into or modified on or after that date, with the notice requirement taking effect 180 days after becoming law.

Labor and Employment

https://www.nysenate.gov/legislation/bills/2025/A10023