Pending legislation in New York (Senate Bill S3100A/Assembly Bill A1278B) will result in the sharp curtailment of post-employment non-competes if passed into law. This development is concerning to many employers operating in New York or employing individuals currently living there, but for the moment, it is far from clear whether the current (or any) form of the bill may be passed into law.
This latest attack on the use of non-competes in New York comes on the heels of a flurry of activity over the opening months of 2023 intended to chill the use of restrictive covenants, including (i) the FTC’s notice of its intention to propose a ban on non-competes, (ii) the NLRB’s General Counsel issuing a memorandum expressing the opinion that certain non-competes violate the National Labor Relations Act, and (iii) Minnesota’s banning of non-competes.
On July 28 we published a client alert, New York May Become Latest Hostile Jurisdiction in Ever Changing Non-Compete Landscape, which provides an in-depth analysis concerning the bill’s key definitions, legislative history, and the potential impact for employers and employment litigation trends alike should Governor Kathy Hochul sign the current draft of the bill into law.