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NY A01361

Bill

Status

Introduced

1/9/2025

Primary Sponsor

Jeffrey Dinowitz

Click for details

Origin

Assembly

2025-2026 General Assembly

AI Summary

  • Allows employers to require employees to sign restrictive covenants (non-compete agreements) as a condition of employment, continued employment, or receiving severance pay

  • Requires employers to provide written disclosure of covenant terms at least 30 business days before the agreement takes effect, with agreements signed by both parties and notice of the employee's right to consult counsel

  • Limits enforceable restrictive covenants to protecting trade secrets, covering only services the employee provided during their last two years of employment

  • Restrictive covenants are unenforceable if the employer terminates the employee without "good cause," which includes improper conduct, inefficient work, repeated policy violations, or serious misconduct

  • Authorizes the Labor Commissioner to investigate violations and impose civil fines up to $5,000 per affected employee

Legislative Description

Allows employers to request or require a prospective or current employee to execute a restrictive covenant not to engage in specified acts in competition with the employer after termination of the employment relationship as a condition of employment, continued employment, or with respect to severance pay.

Last Action

referred to labor

1/7/2026

Committee Referrals

Labor1/9/2025

Full Bill Text

No bill text available