Legislation that would ban noncompete agreements for all workers, regardless of their salary level or job function, recently passed the New York State Assembly and is now on Governor Kathy Hochul’s desk. If the bill is signed into law, it could lead to other states passing similar legislation.
Partner Reid Skibell discussed the potential impact of this legislation with the New York Daily News, noting, “There’s only one way to look at it, which is that it’s a sea change in employment law. It’s a reevaluation of whether we’ve gone way too far. Oftentimes you see everyone in a company on the same noncompete. And I think that’s what’s driving the FTC, what’s driving this law.”
In explaining how the legislation will affect other states, Reid told Corporate Counsel, “New York employment law is heavily followed in other places, because it’s so much more developed. So you have a lot of law here on noncompetes that informs courts that deal with noncompetes in other jurisdictions.”
Read the articles (subscriptions required):
- New York Daily News: NY Bill Banning Noncompete Contracts Could Mark ‘Seismic’ Shift in Employment Law
- Corporate Counsel: New York State Noncompete Ban Could Add Fuel to Growing Movement