Proposed NY Non-Compete Ban Heads to Governor Hochul for Signature

June 21, 2023

We recently reported on SO3100, a bill that the New York Senate passed on June 7 to ban non-competes in New York (the “Act”). Yesterday, June 20, the Act passed the New York State Assembly, sending it to Governor Hochul for signature. If the Governor signs the Act, it will become law.

The Act’s effective date would be 30 days after the Governor signs it. The Act states that it will apply to “contracts entered into or modified on or after” that effective date, but the Act is ambiguous enough that we expect litigants will challenge even existing non-competes, at least if employers seek to enforce them.

New York employers should review closely their restrictive covenants in case the Act becomes law. We’re not aware of any public statements made by Governor Hochul about the Act, but she previously supported a ban on non-competes for workers making below the New York median wage.

If you have any questions, please contact David Baron, Anne Patin, or your primary Seward & Kissel attorney.