Bill Text: NY S04610 | 2017-2018 | General Assembly | Introduced
Bill Title: Prohibits employers from requiring low-wage employees to enter into covenants not to compete and requires employers to notify potential employees of any requirement to enter into a covenant not to compete.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-01-03 - REFERRED TO LABOR [S04610 Detail]
Download: New_York-2017-S04610-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4610 2017-2018 Regular Sessions IN SENATE February 21, 2017 ___________ Introduced by Sen. SAVINO -- read twice and ordered printed, and when printed to be committed to the Committee on Labor AN ACT to amend the labor law, in relation to prohibiting employers from requiring low-wage employees to enter into covenants not to compete and requiring employers to notify potential employees of any require- ment to enter into a covenant not to compete 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 "New York 2 State mobility and opportunity for vulnerable employees act" or the "NY 3 MOVE act". 4 § 2. The labor law is amended by adding a new article 33 to read as 5 follows: 6 ARTICLE 33 7 NEW YORK STATE MOBILITY AND OPPORTUNITY FOR VULNERABLE EMPLOYEES ACT 8 Section 950. Definitions. 9 951. Prohibiting covenants not to compete for low-wage employ- 10 ees. 11 952. Disclosure requirement for covenants not to compete. 12 953. Enforcement. 13 § 950. Definitions. For purposes of this article, the following terms 14 shall have the following meanings: 15 1. "Commerce" has the meaning given such term in section three of the 16 Fair Labor Standards Act of 1938 (29 U.S.C. 203). 17 2. "Covenant not to compete" means an agreement: 18 (a) between an employee and employer that restricts such employee from 19 performing: 20 (i) any work for another employer for a specified period of time; 21 (ii) any work in a specified geographical area; or 22 (iii) work for another employer that is similar to such employee's 23 work for the employer included as a party to the agreement; and EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD03762-01-7S. 4610 2 1 (b) that is entered into after the effective date of this article. 2 3. "Employee", "employer", "enterprise", "enterprise engaged in 3 commerce or in the production of goods for commerce", and "goods" have 4 the meanings given such terms in section three of the Fair Labor Stand- 5 ards Act of 1938 (29 U.S.C. 203). 6 4. "Livable hourly rate" means: 7 (a) for the fiscal year of the effective date of this article, the 8 greater of: 9 (i) fifteen dollars per hour; or 10 (ii) the hourly rate equal to the minimum wage required by the appli- 11 cable state or local minimum wage law; and 12 (b) for each succeeding fiscal year, the greater of: 13 (i) the adjusted amount described in subdivision three of section nine 14 hundred fifty-one of this article; or 15 (ii) the hourly rate equal to the minimum wage required by the appli- 16 cable state or local minimum wage law. 17 5. "Low-wage employee": 18 (a) means an employee who, excluding any overtime compensation 19 required under section seven of the Fair Labor Standards Act of 1938 (29 20 U.S.C. 207) or under an applicable state law, receives from the applica- 21 ble employer: 22 (i) an hourly compensation that is less than the liveable hourly rate; 23 or 24 (ii) an annual compensation that is equal to or less than: 25 (A) for the fiscal year of the effective date of this article, thir- 26 ty-one thousand two hundred dollars per year; and 27 (B) for each succeeding fiscal year, the adjusted amount described in 28 subdivision three of section nine hundred fifty-one of this article; and 29 (b) does not include any salaried employee who receives from the 30 applicable employer compensation that, for two consecutive months, is 31 greater than: 32 (i) for the fiscal year of the effective date of this article, five 33 thousand dollars; and 34 (ii) for each succeeding fiscal year, the adjusted amount described in 35 subdivision three of section nine hundred fifty-one of this article. 36 § 951. Prohibiting covenants not to compete for low-wage employees. 1. 37 No employer shall enter into a covenant not to compete with any low-wage 38 employee of such employer, who in any work week is engaged in commerce 39 or in the production of goods for commerce (or is employed in an enter- 40 prise engaged in commerce or in the production of goods for commerce). 41 2. An employer who employs any low-wage employee, who in any work week 42 is engaged in commerce or in the production of goods for commerce (or is 43 employed in an enterprise engaged in commerce or in the production of 44 goods for commerce), shall post notice of the provisions of this article 45 in a conspicuous place on the premises of such employer. 46 3. (a) For each fiscal year after the fiscal year of the effective 47 date of this article, the commissioner shall adjust each amount in 48 effect under subparagraph (i) of paragraph (b) of subdivision four of 49 section nine hundred fifty of this article, clause (B) of subparagraph 50 (ii) of paragraph (a) of subdivision five of section nine hundred fifty 51 of this article, or subparagraph (i) of paragraph (b) of subdivision 52 five of section nine hundred fifty of this article for inflation by 53 increasing each such amount, as in effect for the preceding fiscal year, 54 by the annual percentage increase in the Consumer Price Index for Urban 55 Wage Earners and Clerical Workers (United States city average, allS. 4610 3 1 items, not seasonally adjusted), or its successor publication, as deter- 2 mined by the Bureau of Labor Statistics. 3 (b) The amounts adjusted under paragraph (a) of this subdivision shall 4 be rounded to the nearest multiple of $0.05. 5 § 952. Disclosure requirement for covenants not to compete. In order 6 for an employer to require an employee, who in any work week is engaged 7 in commerce or in the production of goods for commerce (or is employed 8 in an enterprise engaged in commerce or in the production of goods for 9 commerce) and is not a low-wage employee, to enter into a covenant not 10 to compete, the employer shall, prior to the employment of such employee 11 and at the beginning of the process for hiring such employee, have 12 disclosed to such employee the requirement for entering into such coven- 13 ant. 14 § 953. Enforcement. 1. The commissioner shall have the power to 15 receive, investigate, attempt to resolve, and enforce a complaint of a 16 violation of sections nine hundred fifty-one and nine hundred fifty-two 17 of this article, subject to subdivision two of this section. 18 2. (a) The commissioner shall impose a civil fine: 19 (i) with respect to any employer who violates subdivision one of 20 section nine hundred fifty-one or section nine hundred fifty-two of this 21 article, an amount not to exceed five thousand dollars for each employee 22 who was the subject of such violation; and 23 (ii) with respect to any employer who violates subdivision two of 24 section nine hundred fifty-one of this article, an amount not to exceed 25 five thousand dollars. 26 (b) In determining the amount of any civil fine under this section, 27 the commissioner shall consider the appropriateness of the fine to the 28 size of the employer subject to such fine and the gravity of the appli- 29 cable violation. 30 § 3. This act shall take effect immediately and shall apply to employ- 31 ees hired on and after such date.
