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Home > State Law Articles > New York > Restrictive Covenants (NY)

Articles Discussing Restrictive Covenants In New York.

New York Lawmakers Propose Banning Noncompete Agreements

June 28, 2023 Filed Under: Restrictive Covenants (NY)

This month both the New York State (NYS) Senate and the NYS Assembly passed identical bills that effectively ban all noncompete agreements in the state of New York. If signed by Governor Kathy Hochul, the legislation would become Section 191-d of New York Labor Law, effective 30 days after its signing.

New York Non-Compete Ban Goes to Governor

June 21, 2023 Filed Under: Restrictive Covenants (NY)

Jackson Lewis

The New York State legislature has passed a bill banning all non-compete agreements for all workers, regardless of their salary level or job function. The bill now goes to Governor Kathy Hochul.

Non-Compete Ban on the Horizon in New York?

June 21, 2023 Filed Under: Restrictive Covenants (NY)

Littler

Non-compete agreements may soon be unlawful in New York. The New York State Assembly passed A1278B on June 20, and the New York State Senate previously passed its counterpart bill, Senate Bill 3100A, earlier this month. If signed by the governor, the bill would amend the New York Labor

New York State Assembly Passes Non-Compete Bill

June 21, 2023 Filed Under: Restrictive Covenants (NY)

On June 20, 2023, the New York State Assembly approved one of two bills concerning non-compete agreements that the New York State Senate just recently passed. Bill No. S3100A, which would prohibit employers from using non-compete agreements, passed the Assembly and is on its way to the desk of Governor

New York Bans Non-Compete Agreements

June 20, 2023 Filed Under: Restrictive Covenants (NY)

Jackson Lewis

The New York State legislature has passed a bill banning all non-compete agreements for all workers, regardless of their salary level or job function. The bill now goes to Governor Kathy Hochul.

New York State Senate Passes Prohibitions on Non-Competes

June 12, 2023 Filed Under: Restrictive Covenants (NY)

Monumental changes to New York law on non-compete agreements appear imminent. On June 7, 2023, the New York State Senate approved two bills concerning non-compete agreements. The first, Bill No. S3100A, proposes a ban on all non-compete agreements, while the second, Bill No. S6748, proposes a limited ban of certain

New York Bill to Amend Deceptive Trade Practices Law May Encourage Lawsuits

June 3, 2019 Filed Under: Restrictive Covenants (NY)

Jackson Lewis

The New York legislature is considering significantly expanding the state’s deceptive trade practices law to cover “unfair” and “abusive” practices and to raise the minimum amount recoverable for proving a claim from $50 to $2,000. In addition, the bill (S.2407 and A.679) would authorize class actions “to recover actual, statutory and/or punitive damages” for the first time under the law.

NY Attorney General Schneiderman Declares “War” on Non-Compete Agreements That He Perceives as Overbroad

August 22, 2016 Filed Under: Restrictive Covenants (NY)

Littler

In an initiative that is virtually without precedent in New York, in the past two months (June 15, June 22 and August 4) Attorney General Schneiderman announced agreements with three separate companies in three different industries under which they each agreed to stop utilizing non-compete agreements that applied to a broad range of their employees.

New York Court Refuses to Enforce Agreement’s Covenant Not to Compete Where Employer Breached the Agreement First

February 20, 2015 Filed Under: Restrictive Covenants (NY)

Executive Summary: The right to enforce a covenant not to compete may be lost when the employer first violates the terms of the same agreement, says a New York appeals court. In Fewer v. GFI Grp. Inc. et al., 124 A.D.3d 457, 2015 WL 176227 (First Dep’t. Jan. 15, 2015), the Appellate Division covering New York County rejected GFI’s attempt to enforce the covenant not to compete contained in the employment agreement of former derivatives desk president Donald Fewer because GFI breached the terms of the same agreement by demoting Fewer before he resigned. That breach also cost GFI the chance use the “employee choice” doctrine as an independent basis for enforcement of its non-compete provision.

NY Appellate Division Rejects Challenge to Forum and Choice of Law by California Defendant

January 17, 2013 Filed Under: Restrictive Covenants (NY)

Jackson Lewis

In the latest chapter of an ongoing dispute between Aon Risk Services and Alliant Insurance Services (stemming from Alliant’s hiring of dozens of Aon employees and accepting millions in annual revenue from former Aon clients), on January 10, 2013, the New York State Supreme Court, Appellate Division, First Department issued a decision upholding key rulings of the trial court that enforced Aon’s restrictive covenant agreements. Aon Risk Services, Northeast, Inc., et al v. Cusack, et al, Index no. 551673/11 (1st Dep. January 10, 2013.)

New York Court: Plaintiff Must Identify Trade Secrets

May 10, 2012 Filed Under: Restrictive Covenants (NY)

Littler

A conundrum employers face when protecting trade secrets is the obligation to identify the very secrets to be protected in litigation. A critical issue in the context of discovery is the extent to which trade secrets must be disclosed and identified by the plaintiff. When the secret is something as technical and unique as a computer source code alleged to have been used to augment a competitor’s source code library, the requirement to identify the misappropriated secret with “reasonable particularity” early in the case may become the “case within the case.”

New York Clarifies Scope of Covenant Against Business Seller’s Solicitation of Former Clients

May 6, 2011 Filed Under: Restrictive Covenants (NY)

Jackson Lewis

New York’s highest court has ruled that a business seller may solicit and regain former clients for his new employer without incurring liability for improperly soliciting business under certain circumstances. Bessemer Trust Co., N.A. v. Branin, No. 63, 2011 NY Slip Op. 3307, 2011 N.Y. LEXIS 602 (Apr. 28, 2011).

Court in New York Says No Trade Secret Protection for Outdated Information Available on Internet

October 21, 2010 Filed Under: Restrictive Covenants (NY)

Jackson Lewis

Outdated information on a financial services industry recruiter’s database is not protectable as a trade secret where the company did not take adequate safeguards to protect the information and the information was available on the Internet, a federal district court in New York has ruled. Sasqua Group, Inc. v. Courtney, 09-cv-528 (ADS)(ETB), 2010 U.S. Dist. LEXIS 93442 (E.D.N.Y. Aug. 2, 2010) (report and recommendation), adopted, 2010 U.S. LEXIS 98621 (E.D.N.Y. Sept. 7, 2010). U.S. District Court Judge Arthur D. Spatt adopted, in its entirety, the report and recommendation of Magistrate Judge A. Kathleen Tomlinson.

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