New York City lawmakers are considering a measure that would make the city the latest jurisdiction to ban noncompete agreements between employers and their employees, after Governor Kathy Hochul in December 2023 vetoed a statewide ban passed by lawmakers.
Articles Discussing Restrictive Covenants In New York.
A Step Too Far? Governor Hochul Vetoes New York Non-Compete Ban
New York Governor Kathy Hochul vetoed Senate Bill S3100A, a bill passed by both houses of the legislature in June, that would prohibit all non-compete agreements.
New York Governor Vetoes Noncompete Ban Bill
On December 22, 2023, Governor Kathy Hochul vetoed the bill New York lawmakers delivered to her, which proposed a ban of nearly all types of noncompete agreements in employment. In so doing, she called for modifications to the legislation that would protect “middle-class and low-wage workers” from noncompete agreements, while
New York Lawmakers Deliver Noncompete Bill to Governor Without High-Income Exception—Could Amendments Be in the Works?
On December 12, 2023, New York lawmakers formally delivered a bill to Governor Kathy Hochul’s desk for signature that would ban nearly all types of noncompete agreements in employment. The legislature and governor’s office are now reportedly in the process of negotiating “chapter amendments” to the legislation. The governor has
New York Expands Restrictions on Nondisclosure Agreements Related to Discrimination, Harassment, and Retaliation Claims
New York State recently enacted laws to further restrict the use of nondisclosure agreements in connection with resolution of employment discrimination, harassment, and retaliation claims and extend the statute of limitations to file complaints with the state enforcement agency. The laws are aimed at providing additional protections to those claiming
New York Employers Now Face Yet Another Change in their Ability to Obtain Confidentiality and Enforcement of Nondisparagement Provisions in Separation Agreements or Settlement Agreements
Executive Summary: New York employers who use separation agreements or settle claims of harassment, discrimination, or retaliation must ensure they comply with a new amendment to Section 5-336 of the New York General Obligations Law.
New York Lawmakers Propose Banning Noncompete Agreements
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
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?
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
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
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
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
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
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
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.