New York state senator introduces bill to ban noncompetes

New York state Sen. Paul Ryan has introduced a bill that expands upon a 2023 proposal to ban most noncompete agreements in the state. 

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According to a Feb. 28 news release by law firm Morgan Lewis, Mr. Ryan introduced a similar bill at the end of the 2023 legislative session. That bill passed both the houses of the state legislature, but was vetoed by Gov. Kathy Hochul.

The new bill includes exceptions for highly compensated individuals and business owners involved in certain types of sales. It also includes an “express exemption” for some restrictive covenants, such as nondisclosure and client nonsolicitation covenants. The proposed ban, as it stands, would not have any retroactive effect on noncompetes entered into before the effective date.

The bill would specifically prohibit employers from “seeking,  demanding or accepting a noncompete agreement from any covered individual or health-related professionals.”

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