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

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) 2019-06-12 - amended on third reading 5776b [A05776 Detail]

Download: New_York-2019-A05776-Amended.html

                STATE OF NEW YORK

                                                                Cal. No. 252

                               2019-2020 Regular Sessions

                   IN ASSEMBLY

                                    February 19, 2019

        Introduced  by  M.  of  A.  DINOWITZ,  REYES,  SAYEGH, GOTTFRIED, GALEF,
          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

        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  5-337 to read as follows:
     5    §  5-337. 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
    16  threaten to enforce a restrictive employment agreement and any  restric-
    17  tive employment agreement is hereby void.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 5776--B                          2

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