{"id":11093,"date":"2023-07-31T11:11:52","date_gmt":"2023-07-31T15:11:52","guid":{"rendered":"https:\/\/archive-lynchlaw.pfgsandbox.com\/?p=11093"},"modified":"2023-08-04T10:22:55","modified_gmt":"2023-08-04T14:22:55","slug":"new-yorks-potential-shift-on-non-competes","status":"publish","type":"post","link":"https:\/\/archive-lynchlaw.pfgsandbox.com\/?p=11093","title":{"rendered":"New York’s Potential Shift on Non-Competes"},"content":{"rendered":"

New York’s Potential Shift on Non-Competes<\/h2>\n

What This Could Mean for Employers?<\/strong><\/h3>\n

The New York legislature<\/a> has recently passed a bill that will prospectively ban all non-compete agreements within the state. The proposed Bill No. 3100A \u00a7 191-d is awaiting approval from Governor Kathy Hochul, and if signed into law, it would change the way employers protect themselves from competitors in New York. But what does it mean for you?<\/span><\/p>\n

What Does the Bill Say?<\/strong><\/h3>\n

First, the bill defines \u201cnon-complete\u201d quite broadly to encompass any agreement between an employer and an employee that prohibits or restricts someone from obtaining employment after their current working relationship expires. It also defines \u201ccovered individuals\u201d to mean anyone who performs work or services under a condition of economic dependence, basically all employees. While it will only apply to new contracts, and all existing non-competes will be grandfathered in, it will apply to any renegotiated contracts with existing employees.<\/span><\/p>\n

What Doesn’t the Bill Cover?<\/strong><\/h3>\n

There are a number of items the bill doesn\u2019t restrict. For example, the bill does not restrict an employer\u2019s ability to enter into a \u201cfixed term of service\u201d contract with employees. Any contracts that prohibit the disclosure of trade secrets or confidential client information are still acceptable, as are contracts that prohibit the solicitation of customers.<\/span><\/p>\n

Can Employees Sue?<\/strong><\/h3>\n

If Governor Hochul signs the bill, the new legislation would grant employees the right to initiate a civil lawsuit against employers who are in violation. Courts may void such non-compete agreements and order relief, including enjoining certain conduct, payment of liquidated damages, awarding lost compensation, and awarding attorneys’ fees and costs. While the damages may not exceed $10,000 per employee, the bill does require that damages be paid to every affected and covered individual.<\/span><\/p>\n

What is the Statute of Limitations?<\/strong><\/h3>\n

As it stands, the bill sets a two-year statute of limitations. Importantly, that clock does not just run from the date of signing, but from the most recent of four different events:<\/span><\/p>\n