Providing Developments & Insight on Trending Topics in Employment Law

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Providing Developments &amp; Insight on Trending Topics in Employment Law

Members of the New York City Council are looking to accomplish what the New York State Legislature could not – proposing various bans on the use of non-competes in New York City. On February 28, 2024, members of the New York City Council introduced three bills that are aimed, to varying degrees, at reducing or eliminating the use of non-competes. These three bills range from a total ban on non-competes to a low-wage threshold on the use of non-competes to a ban on the use of non-competes for freelancers. Over the past several years, bills of this nature have been proposed by the New York City Council and failed to advance, but with the renewed public interest from the state legislature’s recent attempt at a <a href="https://www.bakerlaw.com/insights/new-york-legislature-approves-ban-on-all-noncompetes/" target="_blank" rel="noreferrer noopener">total ban on non-competes</a>, and the <a href="https://www.bakerlaw.com/insights/ftc-seeks-to-ban-non-compete-restrictions-in-employment-contracts/" target="_blank" rel="noreferrer noopener">Federal Trade Commission’s</a> upcoming rulemaking, it is possible that the City Council will have greater traction this time around. 

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As proposed, the City Council’s three bills include the following provisions:

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Notably, only the first proposed bill, Int 0140-2024, comes close to the proposal by the New York State Legislature that would have voided “[e]very contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind.” &nbsp;This bill was vetoed by Governor Hochul due to its extremely broad reach, which in the governor’s opinion did not address companies’ legitimate interests in New York State’s “highly competitive economic climate.”&nbsp; Whether the rest of the City Council or Mayor Eric Adams agrees with the governor’s decision remains to be seen.

Baker Hostetler’s New York Labor and Employment team is monitoring these bills as they work their way through New York City’s legislative process.&nbsp; Further updates with be forthcoming.

Members of the New York City Council Introduce Three Bills Seeking To Restrict Employers’ Use of Non-Competes