The New York State Senate has approved two bills that could ban or limit the use of non-compete agreements in the state.
Bill No. S3100A would prohibit employers from entering into non-compete agreements with employees, independent contractors, or others who perform work for the employer. Violators could be subject to up to $10,000 in damages per violation.
Bill No. S6748 aims to prevent the establishment of monopolies and restraints of trade. It would require employers to have a "good faith basis" to believe a non-compete agreement is enforceable and would also broaden the definition of non-compete agreements to include certain other types of agreements.
Both bills still need to pass the New York State Assembly and be approved by Governor Kathy Hochul to become law.