New York Assembly passes bill to ban noncompete agreements

On June 20, 2023, the New York State Assembly passed a bill to make noncompete agreements unlawful. The New York State Senate previously passed the bill’s counterpart. Together, the bills aim to prohibit noncompete agreements and authorize covered individuals to file suit against employers alleged to have violated the bills’ provisions. The two bills make clear they would ban noncompetes entered into or modified after the effective date. If signed by Governor Kathy Hochul, they would come into effect 30 days later.

While the business community reacted with shock and anger, the proposed bills follow the nationwide trend against noncompetes that we’ve been tracking for the past several years and is significant for all employers in the region.