Prohibits non-compete agreements and certain restrictive covenants; authorizes covered individuals to bring a civil action in a court of competent jurisdiction against any employer or persons alleged to have violated such prohibition.
If enacted, S09759 would significantly amend New York's labor laws by rendering non-compete agreements void and unenforceable for the majority of employees. This legislative change is expected to bolster worker rights by allowing individuals to pursue new employment without the fear of legal repercussions from former employers. Furthermore, the bill facilitates civil action whereby affected employees can sue for damages resulting from violations, thereby increasing accountability for employers who continue to enforce such clauses.
Bill S09759, introduced by Senator Gianaris, aims to prohibit non-compete agreements and certain restrictive covenants in New York State labor law. The bill defines non-compete agreements as any arrangement that restricts an individual's ability to obtain employment after leaving a company, primarily targeted at lower and mid-level employees while exempting highly compensated individuals who earn over $500,000 annually. The intention of this legislation is to enhance worker mobility and protect employees from overly restrictive contracts that limit their job opportunities after leaving a job.
The proposal has generated considerable discussion around the potential implications for businesses in New York. Proponents of the bill argue that prohibiting non-compete agreements would enhance competition and innovation by allowing employees to freely move between firms and share their expertise. Conversely, some business groups have raised concerns that the restrictions could undermine employers’ investments in training and proprietary knowledge, arguing the potential for increased employee turnover could lead to operational disruptions.
S09759 would empower employees to bring civil actions against employers who enforce prohibited non-compete agreements, with liquidated damages set at a maximum of $10,000 per individual. Employers will also be mandated to inform employees of their rights under this new law, and the legislation stipulates that provisions aimed at circumventing these protections will not be enforceable should they violate the essence of the bill.