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ARTICLE · 13 JUNE 2023

N.Y. State Senate Passes Ban On Non-Competes

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On June 7, 2023, the New York State Senate passed Bill No. S03100 (the "Bill"), which would impose a blanket ban on employee non-competition agreements in New York.

United StatesEmployment and HR
Daryl Leon
Daryl Leon
Alexandra Oxyer
Alexandra Oxyer
Alyssa M. Cook
Alyssa M. Cook
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On June 7, 2023, the New York State Senate passed Bill No. S03100 (the "Bill"), which would impose a blanket ban on employee non-competition agreements in New York.

The Bill defines a "non-compete agreement" as:

any agreement, or clause contained in any agreement, between an employer and a covered individual that prohibits or restricts such covered individual from obtaining employment, after the conclusion of employment with the employer included as a party to the agreement.

The Bill provides a private right of action for individuals who are subject to a prohibited non-compete, against an employer that "seek[s], require[s], demand[s], or accept[s] a non-compete from any covered individual," and courts can order injunctive relief, liquidated damages up to $10 thousand per violation, and compensatory damages, including lost compensation and attorneys' fees and costs.

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