Hi, my name is Jessica Gulla and I am an associate at Evans Fox. This installment of our monthly series is about proposed legislation. I will be briefly discussing new legislation, which has passed the NYS Senate and Assembly, relating to non-compete agreements. Such proposed legislation amends New York labor law by adding a new section 191-d to the labor law, prohibiting certain non-compete agreements and restrictive covenants.
If this new legislation is signed into law, companies, limited liability companies, and partnerships may no longer be able to utilize non-compete agreements in their employment contracts. The proposed law states that “no employer or its agent….of any corporation, partnership, limited liability company, or other entity, shall seek, require, demand or accept a non-compete agreement from any covered individual”. Furthermore, the proposed legislation also voids out any contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind.
If your company utilizes non-compete agreements, you may want to review your agreements prior to the new proposed legislation becoming law. Here at Evans Fox we have several attorneys that can assist you with reviewing your current agreements and, if necessary, preparing new agreements and/or contracts. Please contact us if you would like to discuss how this proposed legislation may affect your business. Thanks for watching and we look forward to hearing from you.