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NY S04641

Bill

Status

Engrossed

6/9/2025

Primary Sponsor

Sean Ryan

Click for details

Origin

Senate

2025-2026 General Assembly

AI Summary

  • Prohibits employers from seeking, requiring, demanding, or accepting non-compete agreements from covered individuals and health-related professionals, making any such agreements null, void, and unenforceable

  • Exempts "highly compensated individuals" earning $500,000 or more annually (adjusted for inflation starting in 2027) from the ban on non-compete agreements

  • Allows covered individuals to bring civil lawsuits within two years of signing, discovering, termination, or enforcement of a prohibited non-compete, with remedies including up to $10,000 in liquidated damages, lost compensation, and attorneys' fees

  • Permits non-compete agreements in business sales where the seller owns at least 15% of a partnership, LLC, or business ownership interest

  • Requires any enforceable non-compete agreement to be reasonable in time (maximum one year), geography, and scope, and must include salary payment during the enforcement period

Legislative Description

Prohibits non-compete agreements and certain restrictive covenants; authorizes covered individuals to bring a civil action in a court of competent jurisdiction against any employer or persons alleged to have violated such prohibition.

Last Action

referred to labor

6/9/2025

Committee Referrals

Labor6/9/2025
Rules5/29/2025
Judiciary5/14/2025
Labor2/10/2025

Full Bill Text

No bill text available