NYC Council · Int 0146-2024 · Filed (End of Session)

The prohibition of requiring low-wage workers to enter into covenants not to compete and also to require employers to notify potential employees of any requirement to enter into a covenant not to compete.

Introduced

Moved

Reached a final decision

Introduced Feb 28, 2024

Official status: Filed (End of Session)

Derived from the official record below.

Officially: “A Local Law to amend the administrative code of the city of New York, in relation to the prohibition of requiring low-wage workers to enter into covenants not to compete and also to require employers to notify potential employees of any requirement to enter into a covenant not to compete” Read the full text

Consumer and Worker Protection

What it does

Employers are increasingly requiring their employees to sign non-compete agreements as a condition of employment, even in low-wage jobs where such provisions do not serve an obvious purpose. These covenants can lead to low-wage employees being unreasonably restricted in finding new jobs. This bill would prohibit employers from requiring low-wage employees to enter into covenants not to compete as a condition of their employment.

Summary written by City Council staff, from the official record. Plain-language AI rewrite with cited sections coming. Not legal advice.