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Bill

A 2456

Prohibits employers from requiring low-wage employees to enter into covenants not to compete and requires employers to notify potential employees of any requirement to enter into a covenant not to compete

2025 Regular Session Introduced by Jeffrey Dinowitz and 4 co-sponsors

Prohibits employers from forcing low-wage workers to sign non-compete agreements and requires notifying applicants of CNTC requirements before or during hiring.

PRINT NUMBER 2456A
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WeVote Research Nonpartisan
Bill Summary · A 2456

Summary of Assembly Bill A2456 (PRINT NUMBER 2456A)

Overview

  • Bill: A2456
  • Title: Prohibits employers from requiring low-wage employees to enter into covenants not to compete and requires employers to notify potential employees of any requirement to enter into a covenant not to compete
  • Status: PRINT NUMBER 2456A (as of May 5, 2025)
  • Introduced: January 17, 2025
  • Primary sponsor: Jeffrey Dinowitz
  • Cosponsors: Angelo Santabarbara, Linda Rosenthal, Phil Steck, Amy Paulin
  • Legislative status: Referred to and progressively advanced in the Labor Committee; amendments and reconfirmations occurred on May 5, 2025
  • Related bills from prior sessions: A8108, A1139, A2504, A2192, A1807

Purpose and intent

  • The bill aims to protect low-wage workers from being required to sign covenants not to compete (CNTCs) as a condition of employment.
  • It also seeks to increase transparency in the hiring process by requiring employers to notify job applicants of any CNTC requirement before or during the hiring process.

Key provisions (as described)

  • Prohibition: Employers would be barred from requiring low-wage employees to enter into covenants not to compete.
  • Disclosure requirement: Employers must notify potential employees if a CNTC is a requirement of employment, ensuring applicants are aware of any such obligation before accepting a job offer.
  • Scope: The protections target “low-wage employees” (the bill would define or apply a threshold consistent with its text; the summary here reflects the substantive aim rather than the exact statutory definitions).
  • Enforcement and penalties: The provided materials do not specify penalties or enforcement mechanisms; the full text would detail any remedies, enforcement authority, and possible penalties.

Affected parties and scope

  • Affects: Employers who hire or seek to hire workers classified as low-wage.
  • Affected individuals: Current or prospective low-wage employees who could be subject to CNTCs.

Procedural and timeline aspects

  • January 17, 2025: Introduced and referred to the Labor Committee.
  • May 5, 2025: Amendments and reconfirmations to the Labor Committee; Print Number updated to 2456A (indicating revised language or provisions).
  • The bill is in the Assembly's Labor Committee stage with subsequent consideration and potential floor actions to follow.

Legislative context and related measures

  • Related bills from prior sessions (A8108, A1139, A2504, A2192, A1807) suggest ongoing interest in restricting non-compete agreements and increasing employer transparency, particularly for lower-wage workers.

Potential impact and considerations

  • For workers: Increased protection from restrictive CNTCs and greater clarity about employment terms during hiring.
  • For employers: May require changes to hiring practices, contract templates, and disclosure processes; potential need to revise employee agreements for low-wage roles.
  • Policy considerations: Balances worker mobility and business interests; effectiveness depends on definitions (what constitutes “low-wage”), enforcement mechanisms, and any transitional provisions.

Note: For precise definitions, effective dates, enforcement details, and any exemptions, refer to the full text of A2456A once available.

Compiled from official sources — confirm details with the bill’s official record.

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