New York lawmakers on Dec. 12 sent a bill banning noncompete agreements to Gov. Kathy Hochul for her signature, lawfirm Ogletree, Deakins, Nash, Smoak & Stewart said in a Dec. 15 article in JDSupra.
Here are five things to know:
1. The Legislature and governor are in the process of negotiating amendments to the bill .
2. Ms. Hochul has 10 days to veto the bill or sign the legislation and continue negotiating amendments, according to the article.
3. The bill as it stands would apply to all workers regardless of compensation. According to a Dec. 6 report in The Wall Street Journal, Ms. Hochul said she wants to see a compensation cap for the ban and floated $250,000 as a level above which noncompetes would be allowed.
4. The bill, which passed the Legislature in June, prohibits requiring a noncompete agreement as well as voids existing noncompetes entered after the bill's effective date.
5. Additionally, the bill would provide a "private cause of action" for employees to challenge noncompete agreements. Liable employers could be subject to "liquidated damages of up to $10,000 for each violation, payment for lost compensation, damages, and attorneys' fees and costs," according to the JDSupra article.