S3100A

The New York State Senate passed legislation Tuesday banning noncompete agreements, advancing a bill that would free workers from restrictions preventing them from seeking employment in their field after leaving a job. Senate Print 3100A, sponsored by Sen. Ryan, passed 40-21 on a roll call vote, with all 21 nays coming from Republican senators. The bill would prohibit employers from restraining employees through noncompete clauses while preserving protections for trade secrets, intellectual property, and non-solicitation agreements. Sen. Ryan argued that noncompetes, which currently bind over 20 percent of New York State employees, harm worker mobility and economic growth. He cited examples of a tattoo artist barred from practicing within 20 miles of her former shop and a chiropractor prevented from working within 30 miles of Watertown. Sen. Ramos, chair of the Labor Committee, said noncompetes keep bad employers in business by forcing workers to remain in abusive environments. The bill would take effect 30 days after becoming law and would apply only to agreements entered into after that date, not retroactively to existing contracts. Sen. Oberacker, the primary opponent, warned the ban would reduce employer incentives to invest in worker training and compensation while increasing litigation over proprietary information. He compared noncompetes to the two-year lobbying restriction legislators face after leaving office.