New York Update: Bill Banning Non-Competes Passes State Assembly and Awaits Signature by Governor Hochul | Seyfarth Shaw

Following the recent passage through the New York State Senate, on June 20, 2023, the New York State Assembly voted to approve a bill, which, if enacted, would ban all post-employment non-compete agreements. We previously reported on the key features of Senate Bill S3100A here. Assembly Bill A1278 is now headed to Governor Hochul’s desk for review, and she has 30 days from receipt to consider the Bill. Given her 2022 State of the State agenda in which Governor Hochul explicitly wrote in favor of legislation to eliminate certain non-compete agreements, expectations are that she will sign the Bill into law. While several states have recently enacted legislation placing income restrictions on non-competes, New York is poised to prospectively ban all employee non-competes regardless of income, making it the fifth state to do so after California, North Dakota, Oklahoma, and Minnesota. We will continue to monitor and report on any further developments.

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