Fixing The Recently Proposed Blanket Bans On Non-Compete Agreements

On June 20, 2023, the New York State Legislature passed a bill that would impose a blanket ban on New York employers from entering into non-compete agreements with employees. The bill now goes to Governor Kathy Hochul for her consideration. If enacted, New York would join four other states—California, Oklahoma, North Dakota, and Minnesota—which ban all non-compete agreements, regardless of position or income level.

In New York City, on June 8, 2023, City Council members introduced a bill that, if enacted, would prohibit employers from entering into new non-compete agreements and make all existing non-compete agreements unenforceable.

At the federal level, in January, the Federal Trade Commission issued a proposed rule that would ban non-compete agreements nationwide on the grounds that such agreements constitute an "unfair method of competition." The FTC is still considering the proposed rule after receiving tens of thousands of comments from the public.