A02504 Summary:

BILL NOA02504
 
SAME ASNo Same As
 
SPONSORDinowitz (MS)
 
COSPNSRGottfried, Steck, Rosenthal L, Zebrowski, Galef, Mosley, Blake, Fahy, Santabarbara, D'Urso, Abinanti
 
MLTSPNSRBraunstein, Cook, Englebright, Epstein, Glick, Simon, Wright
 
Add Art 33 950 - 953, Lab L
 
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.
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A02504 Actions:

BILL NOA02504
 
01/23/2019referred to labor
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A02504 Committee Votes:

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A02504 Floor Votes:

There are no votes for this bill in this legislative session.
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A02504 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          2504
 
                               2019-2020 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 23, 2019
                                       ___________
 
        Introduced by M. of A. DINOWITZ, GOTTFRIED, STECK, L. ROSENTHAL, ZEBROW-
          SKI,  GALEF,  MOSLEY,  BLAKE,  FAHY, SANTABARBARA, D'URSO, ABINANTI --
          Multi-Sponsored by -- M. of A. BRAUNSTEIN, COOK, ENGLEBRIGHT, EPSTEIN,
          GLICK, SIMON, WRIGHT -- read once and referred  to  the  Committee  on
          Labor

        AN ACT to amend the labor law, in relation to prohibiting employers from
          requiring  low-wage  employees  to enter into covenants not to compete
          and requiring employers to notify potential employees of any  require-
          ment to enter into a covenant not to compete
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. This act shall be known and may be cited as the  "New  York
     2  State  mobility and opportunity for vulnerable employees act" or the "NY
     3  MOVE act".
     4    § 2. The labor law is amended by adding a new article 33  to  read  as
     5  follows:
     6                                  ARTICLE 33
     7    NEW YORK STATE MOBILITY AND OPPORTUNITY FOR VULNERABLE EMPLOYEES ACT
     8  Section 950. Definitions.
     9          951. Prohibiting  covenants  not to compete for low-wage employ-
    10                 ees.
    11          952. Disclosure requirement for covenants not to compete.
    12          953. Enforcement.
    13    § 950. Definitions. For purposes of this article, the following  terms
    14  shall have the following meanings:
    15    1.  "Commerce" has the meaning given such term in section three of the
    16  Fair Labor Standards Act of 1938 (29 U.S.C. 203).
    17    2. "Covenant not to compete" means an agreement:
    18    (a) between an employee and employer that restricts such employee from
    19  performing:
    20    (i) any work for another employer for a specified period of time;
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00711-01-9

        A. 2504                             2
 
     1    (ii) any work in a specified geographical area; or
     2    (iii)  work  for  another  employer that is similar to such employee's
     3  work for the employer included as a party to the agreement; and
     4    (b) that is entered into after the effective date of this article.
     5    3.  "Employee",  "employer",  "enterprise",  "enterprise  engaged   in
     6  commerce  or  in the production of goods for commerce", and "goods" have
     7  the meanings given such terms in section three of the Fair Labor  Stand-
     8  ards Act of 1938 (29 U.S.C. 203).
     9    4. "Livable hourly rate" means:
    10    (a)  for  the  fiscal  year of the effective date of this article, the
    11  greater of:
    12    (i) fifteen dollars per hour; or
    13    (ii) the hourly rate equal to the minimum wage required by the  appli-
    14  cable state or local minimum wage law; and
    15    (b) for each succeeding fiscal year, the greater of:
    16    (i) the adjusted amount described in subdivision three of section nine
    17  hundred fifty-one of this article; or
    18    (ii)  the hourly rate equal to the minimum wage required by the appli-
    19  cable state or local minimum wage law.
    20    5. "Low-wage employee":
    21    (a)  means  an  employee  who,  excluding  any  overtime  compensation
    22  required under section seven of the Fair Labor Standards Act of 1938 (29
    23  U.S.C. 207) or under an applicable state law, receives from the applica-
    24  ble employer:
    25    (i) an hourly compensation that is less than the liveable hourly rate;
    26  or
    27    (ii) an annual compensation that is equal to or less than:
    28    (A)  for  the fiscal year of the effective date of this article, thir-
    29  ty-one thousand two hundred dollars per year; and
    30    (B) for each succeeding fiscal year, the adjusted amount described  in
    31  subdivision three of section nine hundred fifty-one of this article; and
    32    (b)  does  not  include  any  salaried  employee who receives from the
    33  applicable employer compensation that, for two  consecutive  months,  is
    34  greater than:
    35    (i)  for  the fiscal year of the effective date of this article,  five
    36  thousand dollars; and
    37    (ii) for each succeeding fiscal year, the adjusted amount described in
    38  subdivision three of section nine hundred fifty-one of this article.
    39    § 951. Prohibiting covenants not to compete for low-wage employees. 1.
    40  No employer shall enter into a covenant not to compete with any low-wage
    41  employee of such employer, who in any work week is engaged  in  commerce
    42  or  in the production of goods for commerce (or is employed in an enter-
    43  prise engaged in commerce or in the production of goods for commerce).
    44    2. An employer who employs any low-wage employee, who in any work week
    45  is engaged in commerce or in the production of goods for commerce (or is
    46  employed in an enterprise engaged in commerce or in  the  production  of
    47  goods for commerce), shall post notice of the provisions of this article
    48  in a conspicuous place on the premises of such employer.
    49    3.  (a)  For  each  fiscal year after the fiscal year of the effective
    50  date of this article, the  commissioner  shall  adjust  each  amount  in
    51  effect  under  subparagraph  (i) of paragraph (b) of subdivision four of
    52  section nine hundred fifty of this article, clause (B)  of  subparagraph
    53  (ii)  of paragraph (a) of subdivision five of section nine hundred fifty
    54  of this article, or subparagraph (i) of  paragraph  (b)  of  subdivision
    55  five  of  section  nine  hundred  fifty of this article for inflation by
    56  increasing each such amount, as in effect for the preceding fiscal year,

        A. 2504                             3
 
     1  by the annual percentage increase in the Consumer Price Index for  Urban
     2  Wage  Earners  and  Clerical  Workers  (United  States city average, all
     3  items, not seasonally adjusted), or its successor publication, as deter-
     4  mined by the Bureau of Labor Statistics.
     5    (b) The amounts adjusted under paragraph (a) of this subdivision shall
     6  be rounded to the nearest multiple of $0.05.
     7    §  952.  Disclosure requirement for covenants not to compete. In order
     8  for an employer to require an employee, who in any work week is  engaged
     9  in  commerce  or in the production of goods for commerce (or is employed
    10  in an enterprise engaged in commerce or in the production of  goods  for
    11  commerce)  and  is not a low-wage employee, to enter into a covenant not
    12  to compete, the employer shall, prior to the employment of such employee
    13  and at the beginning of the  process  for  hiring  such  employee,  have
    14  disclosed to such employee the requirement for entering into such coven-
    15  ant.
    16    §  953.  Enforcement.  1.  The  commissioner  shall  have the power to
    17  receive, investigate, attempt to resolve, and enforce a complaint  of  a
    18  violation  of sections nine hundred fifty-one and nine hundred fifty-two
    19  of this article, subject to subdivision two of this section.
    20    2. (a) The commissioner shall impose a civil fine:
    21    (i) with respect to any  employer  who  violates  subdivision  one  of
    22  section nine hundred fifty-one or section nine hundred fifty-two of this
    23  article, an amount not to exceed five thousand dollars for each employee
    24  who was the subject of such violation; and
    25    (ii)  with  respect  to  any  employer who violates subdivision two of
    26  section nine hundred fifty-one of this article, an amount not to  exceed
    27  five thousand dollars.
    28    (b)  In  determining  the amount of any civil fine under this section,
    29  the commissioner shall consider the appropriateness of the fine  to  the
    30  size  of the employer subject to such fine and the gravity of the appli-
    31  cable violation.
    32    § 3. This act shall take effect immediately and shall apply to employ-
    33  ees hired on and after such date.
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