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New York looks to permanently ban non-compete clauses in employment contracts

In a move that could redefine employment contracts in the state, the New York legislature has passed a bill seeking to eliminate non-compete clauses, which limit where employees can work post-employment.

The bill, which is now awaiting Gov. Kathy Hochul’s signature, was approved in the state Senate earlier this month and cleared the Assembly on Tuesday. However, the bill does not ban confidentiality agreements or non-solicitation deals, allowing companies to protect their proprietary information without constraining an individual’s career options.


The sponsors expect the bill to positively impact the state’s job market, enabling businesses to hire the best candidates for vacant positions.

This development in New York comes as the Federal Trade Commission is considering changes to national rules to bar non-compete agreements. Current estimates indicate that between 27.8% and 46.5% of private sector workers in the U.S. are subject to non-compete clauses.