New York Non-Competes: Competing to Stay Alive
There is an ever-growing wave of states banning non-compete agreements (“non-competes”), and New York is likely to join this trend. The New York Legislature just passed one of the broadest non-compete bans in the history of the United States in early June this year, and Governor Kathy Hochul is likely to sign this ban into effect. This broad non-compete ban comes in the form of two bills, both passed by the New York Senate. One bill would ban post-employment non-competes, and the other would prohibit employers from having employees enter into a non-compete, absent a “good faith basis”. If signed by Governor Hochul, these bills will become effective 30 days after signing. These bills will be prospective, meaning they will not invalidate preexisting non-competes signed on or before July 1st, 2023.