The New York State Senate has voted to ban all non-compete agreements for employees in the state. The law, Bill No. S03100 would, if also approved by the New York State Assembly and signed into law, make it illegal for employers to write provisions in their contracts that would prevent employees from working with competitors in the same field or keep them from starting their own businesses. The goal of this law is to encourage competition and prevent employers from coercing their employees into working for them against their will.
The Federal Trade Commission (FTC) has recently announced that it is considering a ban on non-compete clauses for employment contracts across the country. The rule, if accepted, would make it illegal for employers to require employees to sign non-compete agreements as part of their terms of employment. The rule is meant to help many employees who often struggle to find work as a result of these restrictive agreements.