New York S 7437: Relates to prohibiting agreements between employers that directly restrict the current or future employment of any employee

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S07437 Summary:

BILL NOS07437 

&nbsp

SAME ASSAME AS A00087

&nbsp

SPONSORHOYLMAN-SIGAL

&nbsp

COSPNSRMAY

&nbsp

MLTSPNSR

&nbsp

Add §5-338, Gen Ob L

&nbsp

Prohibits agreements between employers that directly restrict the current or future employment of any employee; allows for a cause of action against employers who engage in such agreements.

Go to top S07437 Actions:

BILL NOS07437 

&nbsp

04/16/2025REFERRED TO JUDICIARY

04/29/20251ST REPORT CAL.777

04/30/20252ND REPORT CAL.

05/01/2025ADVANCED TO THIRD READING 

06/13/2025COMMITTED TO RULES

Go to topS07437 Committee&nbspVotes:

Go to topS07437 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS07437 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 7437

 2025-2026 Regular Sessions

 IN SENATE

 April 16, 2025
 ___________

 Introduced by Sens. HOYLMAN-SIGAL, MAY -- read twice and ordered print-
 ed, and when printed to be committed to the Committee on Judiciary

 AN ACT to amend the general obligations law, in relation to prohibiting
 agreements between employers that directly restrict the current or
 future employment of any employee

 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 "End
 2 Employer Collusion Act".
 3 § 2. The general obligations law is amended by adding a new section
 4 5-338 to read as follows:
 5 § 5-338. Agreements between certain employers restricting the current
 6 or future employment of an employee void. (a) For the purposes of this
 7 section, the following term "restrictive employment agreement" shall
 8 mean any agreement that:
 9 (i) is included in a franchise agreement; and
 10 (ii) prohibits or restricts one or more franchisees from soliciting or
 11 hiring the employees or former employees of the franchisor or another
 12 franchisee.
 13 (b) Notwithstanding any other law to the contrary, no franchisor or
 14 person acting on its behalf may enter into or renew a restrictive
 15 employment agreement, enforce a restrictive employment agreement, or
 16 threaten to enforce a restrictive employment agreement and any restric-
 17 tive employment agreement is hereby void.
 18 (c) Every person who was denied employment due to a restrictive
 19 employment agreement or was otherwise damaged due to a violation of
 20 subdivision (b) of this section may maintain an action for damages equal
 21 to the sum of (i) any actual damages sustained by the individual as a
 22 result of such violation, (ii) such amount of punitive damages as the
 23 court may allow, and (iii) in the case of any successful action to

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD00895-01-5

 S. 7437 2

 1 enforce any liability under this section, the costs of the action
 2 together with reasonable attorney's fees as determined by the court.
 3 (d) Whenever the attorney general believes that there has been a
 4 violation of this section, they may proceed as provided in subdivision
 5 twelve of section sixty-three of the executive law.
 6 § 3. This act shall take effect immediately.

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