
The New York State legislature recently passed a bill that, if approved by Governor Hochul, would effectively ban all non-compete agreements in New York. The bill would become effective 30 days after it is signed by the Governor. If this bill becomes law, New York would join a larger nationwide push to ban non-competes, following behind Minnesota, California, North Dakota, and Oklahoma, all of which have passed similar legislation.
In addition to action on the state level, there has been movement on the federal level to ban non-compete agreements. As previously discussed in RMF’s “Most Non-Competes Violate Federal Law According to NLRB General Counsel” blog post, the National Labor and Relations Board has recently issued a memorandum finding that a majority of non-compete agreements violate the National Labor Relations Act. This trend is further emboldened by the prior directive of President Biden to the Federal Trade Commission to issue a rule banning, or at least limiting, most non-compete agreements in the United States. More information regarding the Federal Trade Commission’s proposed rule is outlined in RMF’s “What Employers Should Know About the FTC’s Proposed Ban on Non-Competition Clauses” blog post.
Continue Reading Is It The Beginning of the End for Non-Compete Agreements in New York?