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B. G., Opalesque Geneva: On June 7, 2023, the New York State Senate approved two bills concerning non-compete agreements. The first, Bill No. S3100A, proposes a ban on all non-compete agreements, while the second, Bill No. S6748, proposes a limited ban on certain non-compete agreements. Both bills are currently pending before the New York State Assembly.
Employers would violate the first bill if they "seek, require, demand or accept" a non-compete-not just if they try to enforce it. An aggrieved employee would have a private right of action against their employer for a number of remedies, including injunctive relief, lost compensation, damages, liquidated damages of up to $10,000, reasonable attorneys' fees and costs and other potential remedies.
Restrictions on the use of confidential information, as well as client non-solicits that are limited to clients the employee "learned about during employment," would be permitted.
The second bill, S6748, would, among other things, prohibit employers from entering into or maintaining non-compete agreements with workers, absent a "good faith basis" to believe a non-compete agreement is enforceable.
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