New York A 2456: Prohibits employers from requiring low-wage employees to enter into covenants not to compete and requires employers to notify potential employees of any requirement to enter into a covenant not to compete

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A02456 Summary:

BILL NOA02456A

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SAME ASNo Same As

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SPONSORDinowitz (MS)

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COSPNSRSteck, Rosenthal, Santabarbara, Paulin

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MLTSPNSRBraunstein, Cook, Epstein, Glick, Simon

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Add Art 33-A §960 - 963, Lab L

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Prohibits employers from requiring low-wage employees to enter into covenants not to compete; requires employers to notify potential employees of any requirement to enter into a covenant not to compete.

Go to top A02456 Actions:

BILL NOA02456A

&nbsp

01/17/2025referred to labor

05/05/2025amend and recommit to labor

05/05/2025print number 2456a

01/07/2026referred to labor

Go to topA02456 Committee&nbspVotes:

Go to topA02456 Floor&nbspVotes:

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

Go to topA02456 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 2456--A

 2025-2026 Regular Sessions

 IN ASSEMBLY

 January 17, 2025
 ___________

 Introduced by M. of A. DINOWITZ, STECK, ROSENTHAL, SANTABARBARA, PAULIN
 -- Multi-Sponsored by -- M. of A. BRAUNSTEIN, COOK, EPSTEIN, GLICK,
 SIMON -- read once and referred to the Committee on Labor -- committee
 discharged, bill amended, ordered reprinted as amended and recommitted
 to said committee

 AN ACT to amend the labor law, in relation to prohibiting employers from
 requiring low-wage employees to enter into covenants not to compete
 and requiring employers to notify potential employees of any require-
 ment to enter into a covenant not to compete

 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 "New York
 2 State mobility and opportunity for vulnerable employees act" or the "NY
 3 MOVE act".
 4 § 2. The labor law is amended by adding a new article 33-A to read as
 5 follows:
 6 ARTICLE 33-A
 7 NEW YORK STATE MOBILITY AND OPPORTUNITY FOR VULNERABLE EMPLOYEES ACT
 8 Section 960. Definitions.
 9 961. Prohibiting covenants not to compete for low-wage employ-
 10 ees.
 11 962. Disclosure requirement for covenants not to compete.
 12 963. Enforcement.
 13 § 960. Definitions. For purposes of this article, the following terms
 14 shall have the following meanings:
 15 1. "Commerce" has the meaning given such term in section three of the
 16 Fair Labor Standards Act of 1938 (29 U.S.C. 203).
 17 2. "Covenant not to compete" means an agreement:
 18 (a) between an employee and employer that restricts such employee from
 19 performing:
 20 (i) any work for another employer for a specified period of time;

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD04447-02-5

 A. 2456--A 2

 1 (ii) any work in a specified geographical area; or
 2 (iii) work for another employer that is similar to such employee's
 3 work for the employer included as a party to the agreement; and
 4 (b) that is entered into after the effective date of this article.
 5 3. "Employee", "employer", "enterprise", "enterprise engaged in
 6 commerce or in the production of goods for commerce", and "goods" have
 7 the meanings given such terms in section three of the Fair Labor Stand-
 8 ards Act of 1938 (29 U.S.C. 203).
 9 4. "Livable hourly rate" means:
 10 (a) for the fiscal year of the effective date of this article, the
 11 greater of:
 12 (i) twenty-one dollars and fifty cents per hour; or
 13 (ii) the hourly rate equal to the minimum wage required by the appli-
 14 cable state or local minimum wage law; and
 15 (b) for each succeeding fiscal year, the greater of:
 16 (i) the adjusted amount described in subdivision three of section nine
 17 hundred sixty-one of this article; or
 18 (ii) the hourly rate equal to the minimum wage required by the appli-
 19 cable state or local minimum wage law.
 20 5. "Low-wage employee":
 21 (a) means an employee who, excluding any overtime compensation
 22 required under section seven of the Fair Labor Standards Act of 1938 (29
 23 U.S.C. 207) or under an applicable state law, receives from the applica-
 24 ble employer:
 25 (i) an hourly compensation that is less than the liveable hourly rate;
 26 or
 27 (ii) an annual compensation that is equal to or less than:
 28 (A) for the fiscal year of the effective date of this article, forty-
 29 f