NY Employers: You probably exhaled in December 2023 when Governor Hochul vetoed the proposed NYS bill banning non-compete agreements (with limited exceptions). Well, now NYC is taking a turn.
The New York City Council introduced a bill last week that would ban all current and future non-compete agreements in New York City. The bill would prohibit employers from maintaining “a non-compete agreement with any worker,” with “worker” broadly defined as a “natural person who works, whether paid or unpaid, for an employer” and which term includes independent contractors.
Notably, the proposed bill would also require an employer to rescind any existing non-compete agreements in effect on the effective date of the law (120 days after it is signed into law). The bill also contains a provision providing for civil penalties of $500 per violation.
The text of the proposed legislation can be found here: The New York City Council – File #: Int 0140-2024
The bill is expected to draw a number of legal challenges…. stay tuned.