View all Articles

Proposed Legislation Aims to Ban Non-Compete Agreements for NYC Employers 

New York City (NYC) employers could face significant restrictions on their ability to prevent employees from seeking new employment or starting their businesses after leaving their current organization. The proposed bill, Int. 0140-2024, titled “Prohibition of non-compete agreements,” is currently undergoing review by the New York City Council. If approved, it will take effect 120 days after becoming law. 

Under this legislation, a broad ban on non-compete agreements would be enacted, prohibiting NYC employers from: 

  • Entering into non-compete agreements with any workers, including both employees and independent contractors. 
  • Enforcing existing non-compete agreements, irrespective of their date of signing. Consequently, previously signed agreements would be rendered unenforceable. 

It is important to note that while this bill addresses non-compete agreements, it does not specifically mention confidentiality agreements. As a result, employers may still be able to use confidentiality agreements to safeguard sensitive company information. 

Next Steps 

Employers must stay proactive and monitor the progress of this bill through the New York City Council website. It is recommended that you review your existing agreements to determine the potential impact and enforceability if the bill becomes law. Employers should also keep records of employees who have signed non-compete agreements to ensure they receive appropriate notifications regarding nullification should the legislation pass. 

To fully understand the implications for their organization, employers should seek guidance from an employment lawyer with expertise in NYC regulations. 

HR Works will continue to monitor the progress of this bill and provide updates as they become available. 

HR Works, headquartered in Upstate New York, is a human resource management outsourcing and consulting firm serving clients throughout the United States for over thirty years. HR Works provides scalable strategic human resource management and consulting services, including: affirmative action programs; benefits administration outsourcing; HRIS self-service technology; full-time, part-time and interim on-site HR managers; HR audits; legally reviewed employee handbooks and supervisor manuals; talent management and recruiting services; and training of managers and HR professionals.