NY A08440

Permits employers to require restrictive covenants as a condition of employment, continued employment, or severance pay, provided specific requirements are met.

Requires employers to disclose covenant terms in writing either at the time of formal job offer or 30 business days prior to employment commencement for new employees, and 30 business days before taking effect for existing employees.

Limits enforceable covenants to protecting only the employer's trade secrets, must be reasonable in scope, restricted to services provided by the employee in the last two years, and cannot restrict employees from serving unsolicited customers or working with other former employees.

Makes covenants unenforceable if an employer terminates an employee without good cause; requires employers to provide written policy on good cause termination standards.

Grants the labor commissioner authority to investigate violations and impose civil fines up to $5,000 per affected employee; effective 60 days after enactment.