June 22, 2023

Volume XIII, Number 173

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June 22, 2023

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June 20, 2023

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New York State Assembly Passes Non-Compete Bill

On June 20, 2023, the New York State Assembly approved one of two bills concerning non-compete agreements that the New York State Senate just recently passedBill No. S3100A, which would prohibit employers from using non-compete agreements, passed the Assembly and is on its way to the desk of Governor Hochul for signature.

Quick Hits

  • The New York State Assembly approved legislation (Bill No. S3100A) that would prohibit employers from using non-compete agreements.

  • Bill No. S3100A does not address employee or client non-solicitation agreements, suggesting such provisions might not be affected by the new law.

  • Bill No. S3100A would become effective thirty days after being signed into law.

  • It is unclear how the bill would apply to non-compete agreements entered into prior to its effective date, as the new language states that “[e]very contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void.”

The legislation would prohibit an employer from entering into a non-compete agreement with an employee, independent contractor, or “any other person who, whether or not employed under a contract of employment, performs work or services” for the employer. S3100A grants covered individuals a private cause of action. If found liable, employers may be subject to liquidated damages of up to $10,000 for each violation, payment for lost compensation, damages, attorneys’ fees, and costs.

© 2023, Ogletree, Deakins, Nash, Smoak & Stewart, P.C., All Rights Reserved.National Law Review, Volume XIII, Number 172
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About this Author

Kelly Cardin Employment lawyer Ogletree Deakins.
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Kelly M. Cardin is an associate in the Stamford office of Ogletree Deakins. Her practice focuses on representing employers in a wide range of disputes, including those involving discrimination and retaliation claims, wage and hour claims, wrongful discharge claims, and claims under the FMLA. Kelly also represents employers in class action lawsuits, often involving wage and hour issues. Additionally, she maintains a commercial litigation practice, representing companies in breach of contract and trade secret disputes, among others. Kelly has represented clients before the...

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Matthew P. Gizzo Employment Attorney Ogletree Deakins Dallas
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Matthew P. Gizzo is a zealous advocate and trusted advisor for employers on a wide-variety of labor and employment issues arising under federal and state laws.  Matthew specializes in representing employers both in court and before federal and state administrative agencies in class and collective wage and hour actions, discrimination, harassment, and retaliation charges and lawsuits, ADA accessibility cases, employee non-compete and non-solicit disputes, and workplace safety matters.  He regularly advises clients on the strategic implementation of employment practices...

214-987-3800
Associate

Caitlin L. O’Fallon is an associate in Ogletree Deakins’ New York office. Her practice includes the representation of management in employment litigation matters before state and federal courts, as well as state and federal administrative agencies, and providing preventative advice and counseling.

Caitlin graduated magna cum laude from the Elisabeth Haub School of Law at Pace University, where she served as a Senior Associate of the Pace International Law Review. She also participated in the school’s Federal Judicial Honors Program, through which she served as a...

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Jessica Schild Employment Law Attorney at Ogletree Deakins law firm in New York
Associate

Jessica Schild is an associate in the New York City office where she represents management in all aspects of litigation, including class and collective wage and hour actions, discrimination and harassment litigation, as well as handling charges before federal, state, and local agencies.

Ms. Schild is a graduate of the Hofstra University School of Law where she served as Editor-in- Chief of the Hofstra Labor and Employment Law Journal. During law school, she was also a member of Hofstra Law’s Dispute Resolution Society and successfully competed in several external...

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