The New York City Council is considering bills that would ban noncompetes after Gov. Kathy Hochul in December vetoed a bill that would have prohibited them statewide, Newsday reported March 17.
One bill would ban all noncompetes for employees and independent contractors without an exception for high-income earners, which is one of the reasons Ms. Hochul vetoed the bill at the state level. Employers would also be required to rescind existing noncompetes and would be subject to a $500 civil penalty per violation.
Introduced Feb. 28, the bill defines noncompetes as an agreement that prevents, or effectively prevents, employees from seeking work from a different employer after they no longer work for the original employer.
The same bill also would void previously signed noncompetes. Two other bills before the council would have narrower restrictions, according to Newsday.
Read the full report here.