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A 1361

Relates to restrictive covenants between employers and employees with respect to agreements not to compete

2025 Regular Session Introduced by Jeffrey Dinowitz

Summary of Bill A 1361 OverviewThis bill, introduced on January 9, 2025, aims to address restrictive covenants between employers and employees with respect to non-compete agreement

REFERRED TO LABOR
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Bill Summary · A 1361

Summary of Bill A 1361

Overview

This bill, introduced on January 9, 2025, aims to address restrictive covenants between employers and employees with respect to non-compete agreements. It seeks to introduce new regulations and limitations around the use of non-compete clauses in employment contracts.

Key Provisions

  • Prohibition on Non-Competes for Low-Wage Workers: The bill prohibits employers from requiring low-wage workers (those earning less than $40,000 annually) to sign non-compete agreements.
  • Limits on Non-Compete Duration: For employees earning more than $40,000 per year, the bill restricts non-compete agreements to a maximum duration of 1 year after the end of employment.
  • Disclosure Requirements: Employers would be required to disclose the terms of any non-compete agreement to prospective employees before they accept a job offer.
  • Enforcement Mechanisms: The bill empowers the state Attorney General to investigate and take action against employers who violate the non-compete restrictions. Employees could also bring civil lawsuits against their employers for non-compliance.

Affected Parties

  • Employees: Low-wage workers would be protected from being required to sign non-compete agreements. Higher-wage employees would have more limited non-compete obligations.
  • Employers: Employers would face new requirements and limitations on the use of non-compete clauses in employment contracts, particularly for lower-paid workers.

Procedural Details

The bill has been referred to the state's Labor committee for further consideration and potential amendments. If passed by the legislature, it would take effect 6 months after being signed into law.

This bill builds on previous legislative efforts, such as A 8440 and A 1747, which also sought to address non-compete agreements but did not become law.

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

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