Several months ago, the New York Assembly and Senate passed legislation that would effectively prohibit non-compete agreements in New York State prospectively, but not retroactively. This legislation is now on Governor Hochul’s desk awaiting her signature to become law.

This proposed law would not apply to non-disclosure agreements, nor to agreements prohibiting solicitation of an employer’s clients that the employee learned about during their employment.

This proposed law did not address several important concerns. It did not specify if this law would apply to non-compete agreements connected with the sale of a business, which are very common. It also did not specify if it would apply to agreements not to solicit the employees of the former employer. These are also very common.

Some commentators believe that if Governor Hochul does sign this law, there will be some changes. These may include addressing the issues of non-compete agreements connected with the sale of a business, and agreements not to solicit the employees of the former employer. The final law may also include a threshold wage for employees who are subject to non-competes.

Colligan Law is following this proposed legislation closely and will keep you informed about new developments.

Please let us know if Colligan Law can assist with any of your employment law needs.