In January, the Federal Trade Commission proposed eradicating most non-competition agreements. Last month, while the National Labor Relations Board doubled down on efforts to eliminate these restrictive covenants, the State of Minnesota voted to eliminate them starting in July.
Now New York is poised to become the fifth state to ban noncompetes.
Earlier this month, the New York Senate approved this bill, which will prohibit noncompete agreements and certain restrictive covenants while authorizing covered aggrieved individuals to bring a civil action.
Expressly, the legislation would prohibit agreements between businesses and covered individuals (employees, independent contractors, or “any other person