New York’s Proposed Non-Compete Ban: What Employees Need to Know

New York employees may want to keep an eye on Senate Bill S09759, which would significantly limit the use of non-compete agreements in the state. The bill, which passed the New York Senate but did not receive a vote in the Assembly before the close of the 2026 legislative session, would prohibit employers from requiring or enforcing non-compete agreements against most workers covered by the legislation. The proposed law includes exceptions for highly compensated individuals earning at least $500,000 annually in cash compensation, as well as non-competes entered into in connection with the sale of a business.

For employees, the bill could provide greater mobility and flexibility when changing jobs. Importantly, S09759 would not prohibit employers from using confidentiality agreements, trade secret protections, or customer non-solicitation provisions, provided those restrictions do not effectively function as non-competes. The bill would also give covered workers the right to bring lawsuits against employers that violate the law and seek remedies including injunctive relief, damages, and attorneys’ fees.

Although the legislation is currently stalled, it may carry over into the 2027 legislative session. Given the Legislature’s repeated efforts to restrict non-compete agreements, including an earlier, broader ban that was ultimately vetoed by the Governor, employees should continue to monitor developments that could expand their ability to pursue new employment opportunities without post-employment restrictions.