Bill Text: NY A05776 | 2019-2020 | General Assembly | Amended

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Bill Title: Prohibits agreements between employers that directly restrict the current or future employment of any employee and allows for a cause of action against employers who engage in such agreements.

Spectrum: Partisan Bill (Democrat 20-0)

Status: (Introduced - Dead) 2020-01-27 - amended on third reading 5776c [A05776 Detail]

Download: New_York-2019-A05776-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         5776--C
                                                                Cal. No. 220

                               2019-2020 Regular Sessions

                   IN ASSEMBLY

                                    February 19, 2019
                                       ___________

        Introduced  by  M.  of  A.  DINOWITZ,  REYES,  SAYEGH, GOTTFRIED, GALEF,
          D'URSO, STIRPE, ARROYO, SIMON, STECK, CRUZ, GLICK,  ZEBROWSKI,  ORTIZ,
          WEPRIN,  FERNANDEZ  -- Multi-Sponsored by -- M. of A. COOK, DenDEKKER,
          ENGLEBRIGHT, GRIFFIN -- read once and referred  to  the  Committee  on
          Judiciary  --  reported  and  referred  to  the  Committee on Codes --
          committee discharged, bill amended, ordered reprinted as  amended  and
          recommitted  to said committee -- reported from committee, advanced to
          a third reading, amended and ordered reprinted, retaining its place on
          the order of third reading -- ordered to a third reading, amended  and
          ordered reprinted, retaining its place on the order of third reading

        AN  ACT to amend the general obligations law, in relation to prohibiting
          agreements between employers that directly  restrict  the  current  or
          future employment of any employee

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. This act shall be known  and  may  be  cited  as  the  "End
     2  Employer Collusion Act".
     3    §  2.  The  general obligations law is amended by adding a new section
     4  5-338 to read as follows:
     5    § 5-338. Agreements between certain employers restricting the  current
     6  or  future  employment of an employee void. (a) For the purposes of this
     7  section, the following term  "restrictive  employment  agreement"  shall
     8  mean any agreement that:
     9    (i) is included in a franchise agreement; and
    10    (ii) prohibits or restricts one or more franchisees from soliciting or
    11  hiring  the  employees  or former employees of the franchisor or another
    12  franchisee.
    13    (b) Notwithstanding any other law to the contrary,  no  franchisor  or
    14  person  acting  on  its  behalf  may  enter  into or renew a restrictive
    15  employment agreement, enforce a  restrictive  employment  agreement,  or

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04740-06-0
        A. 5776--C                          2

     1  threaten  to enforce a restrictive employment agreement and any restric-
     2  tive employment agreement is hereby void.
     3    (c)  Every  person  who  was  denied  employment  due to a restrictive
     4  employment agreement or was otherwise damaged  due  to  a  violation  of
     5  subdivision (b) of this section may maintain an action for damages equal
     6  to  the  sum  of (i) any actual damages sustained by the individual as a
     7  result of such violation, (ii) such amount of punitive  damages  as  the
     8  court  may  allow,  and  (iii)  in  the case of any successful action to
     9  enforce any liability under  this  section,  the  costs  of  the  action
    10  together with reasonable attorney's fees as determined by the court.
    11    (d)  Whenever  the  attorney  general  believes  that there has been a
    12  violation of this section, he or she may proceed as provided in subdivi-
    13  sion twelve of section sixty-three of the executive law.
    14    § 3. This act shall take effect immediately.