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NY A01361
Bill
Status
1/9/2025
Primary Sponsor
Jeffrey Dinowitz
Click for details
AI Summary
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Allows employers to require employees to sign restrictive covenants (non-compete agreements) as a condition of employment, continued employment, or receiving severance pay
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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
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Limits enforceable restrictive covenants to protecting trade secrets, covering only services the employee provided during their last two years of employment
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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
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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