Bill Text: NY S04447 | 2015-2016 | General Assembly | Amended

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Bill Title: Relates to the state policy against restraint of trade.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2016-01-15 - PRINT NUMBER 4447A [S04447 Detail]

Download: New_York-2015-S04447-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                         4447--A
                               2015-2016 Regular Sessions
                    IN SENATE
                                     March 20, 2015
                                       ___________
        Introduced  by  Sen.  LANZA  -- read twice and ordered printed, and when
          printed to be committed to the Committee on Labor  --  recommitted  to
          the  Committee  on  Labor  in accordance with Senate Rule 6, sec. 8 --
          committee discharged, bill amended, ordered reprinted as  amended  and
          recommitted to said committee
        AN  ACT  to amend the labor law, in relation to the state policy against
          restraint of trade
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section 1. The labor law is amended by adding a new article 33 to read
     2  as follows:
     3                                 ARTICLE 33
     4                      POLICY AGAINST RESTRAINT OF TRADE
     5  Section 950. Policy.
     6          951. Particular restraints of trade unenforceable.
     7          952. Exceptions.
     8    §  950.  Policy.  The  legislature hereby reaffirms that the policy of
     9  this state is to disfavor restrictive covenants in employment as consti-
    10  tuting a restraint of trade.
    11    § 951. Particular restraints of trade unenforceable. A covenant not to
    12  compete, or non-solicitation agreement with respect to either  employees
    13  or  customers,  shall  not  be  enforceable against a former employee no
    14  longer employed by a business or independent contractor no longer  in  a
    15  contractual  relationship  with the business, unless (1) the covenant is
    16  reasonable in geographic extent or in time based on the circumstances of
    17  the case and (2) one of the following is true:
    18    (a) Such employee or independent contractor left the  business  volun-
    19  tarily or was involuntarily terminated or discharged for misconduct; and
    20  such employee or independent contractor is unique as a matter of law. An
    21  employee  or  independent contractor is considered unique if and only if
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06922-02-6