New York 2025-2026 Regular Session

New York Senate Bill S04641

Introduced
2/10/25  
Refer
2/10/25  
Report Pass
5/14/25  
Engrossed
6/9/25  

Caption

Prohibits non-compete agreements and certain restrictive covenants; authorizes covered individuals to bring a civil action in a court of competent jurisdiction against any employer or persons alleged to have violated such prohibition.

Summary

Bill S04641 seeks to amend New York's labor law by prohibiting non-compete agreements and certain restrictive covenants for covered individuals, specifically excluding highly compensated individuals. The bill defines a 'covered individual' as any person who is economically dependent on an employer, and it establishes that any non-compete agreements entered into after the bill's effective date will be null and void. Additionally, it provides a mechanism for covered individuals to bring civil actions against employers who violate this prohibition, allowing for the recovery of damages and attorney fees.

Impact

If enacted, this bill will significantly alter the landscape of employment agreements in New York by rendering non-compete clauses unenforceable for a large segment of the workforce. This change aims to enhance job mobility and protect workers' rights, particularly for those who are not highly compensated. The bill will also require employers to inform their employees about their rights under this new law, potentially leading to a more informed workforce regarding employment contracts.

Sentiment

The general sentiment around Bill S04641 appears to be supportive among labor advocates and some legislators who believe it will empower workers and promote fair employment practices. However, there is notable opposition from some business groups and employers who argue that non-compete agreements are essential for protecting trade secrets and maintaining competitive advantages.

Contention

Key points of contention include the potential impact on businesses' ability to protect their proprietary information and the definition of 'highly compensated individuals.' Opponents argue that the bill could undermine businesses' interests, while supporters emphasize the need for worker protections and the promotion of a competitive job market. The debate reflects broader tensions between labor rights and business interests.

Companion Bills

No companion bills found.

Previously Filed As

NY A10023

Prohibits non-compete agreements and certain restrictive covenants; authorizes covered individuals to bring a civil action in a court of competent jurisdiction against any employer or persons alleged to have violated such prohibition.

NY S09759

Prohibits non-compete agreements and certain restrictive covenants; authorizes covered individuals to bring a civil action in a court of competent jurisdiction against any employer or persons alleged to have violated such prohibition.

NY A10981

Prohibits non-compete agreements for certain medical professionals; authorizes covered individuals to bring a civil action in a court of competent jurisdiction against any employer or persons alleged to have violated such prohibition.

NY S09228

Prohibits non-compete agreements for certain medical professionals; authorizes covered individuals to bring a civil action in a court of competent jurisdiction against any employer or persons alleged to have violated such prohibition.

NY A01278

Prohibits non-compete agreements and certain restrictive covenants; authorizes covered individuals to bring a civil action in a court of competent jurisdiction against any employer or persons alleged to have violated such prohibition.

NY S03100

Prohibits non-compete agreements and certain restrictive covenants; authorizes covered individuals to bring a civil action in a court of competent jurisdiction against any employer or persons alleged to have violated such prohibition.

NY SB142

Prohibiting enforcement of covenants not to compete in broadcast employment agreements.

NY HB4067

Relating to prohibiting covenants not to compete against workers.

NY SB1218

L&E; covenants not to compete prohibited, low-wage employees, exceptions, civil penalty.

NY HB5425

Relating to prohibiting certain nondisclosure or non-disparagement agreements by employers; creating a civil cause of action.

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NJ A4603

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NJ S1368

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NY A10023

Prohibits non-compete agreements and certain restrictive covenants; authorizes covered individuals to bring a civil action in a court of competent jurisdiction against any employer or persons alleged to have violated such prohibition.

NY S09759

Prohibits non-compete agreements and certain restrictive covenants; authorizes covered individuals to bring a civil action in a court of competent jurisdiction against any employer or persons alleged to have violated such prohibition.