Non-compete clauses in New York state could be a thing of the past.
A bill that will head to Gov. Kathy Hochul's desk would ban the provisions in employment contracts that are meant to restrict where the person can work after their employment ends. The measure was approved earlier this month in the state Senate and cleared the Assembly on Tuesday.
The measure does not ban confidentiality agreements or non-solicitation deals. That leaves businesses with the ability to protect their proprietary information, but without limiting where a person can work.
“Non-compete agreements are bad for workers, bad for consumers, and bad for the economy. Prohibiting their use will put an end to the increasingly common practice of employers in New York imposing unnecessary restrictions on their employees’ career mobility," said state Sen. Sean Ryan, who sponsored the measure with Assemblymember Latoya Joyner. "It will also create a lasting positive impact on our state’s job market, allowing businesses to hire the best candidates for vacant positions.”
On the national level, the Federal Trade Commission recently signaled it is weighing rules changes to bar non-compete agreements in the coming months.
It's estimated that between 27.8% and 46.5% of workers in the private sector are subject to non-compete clauses in the United States.