BILL NUMBER: S9228
SPONSOR: HARCKHAM
 
TITLE OF BILL:
An act to amend the labor law, in relation to prohibiting non-compete
agreements for certain medical professionals
 
PURPOSE:
Prohibits non-compete agreements for covered health-related profes-
sionals..
 
SUMMARY OF PROVISIONS:
Section 1 amends the labor law by adding a new section 191-d with
purposes to prohibit any employer or its agents from seeking a non-com-
pete agreement, as defined, from any covered health-related profes-
sional, voiding any obtained after the effective date. This allows for
any covered health-related professional to bring forth civil action,
within two years of signature, notice, contractual termination, or
enforcement, against any employer to have violated these sections.
Section 2 amends the labor law by adding a new section 45 to task the
department with developing a notice to inform employees of their rights
pursuant to the prior section.
Section 3 establishes a severability clause and further identifies the
provisions that will justify its usage.
Section 4 establishes the date on which the legislation will take
effect.
 
JUSTIFICATION:
Non-compete clauses are common in employment contracts for many differ-
ent professions, but are especially prominent in the healthcare indus-
try. Their primary purpose is to preserve an employer's customer base,
and they are often restrictive toward health care professionals.
Patients often indirectly bear the burden of non-compete agreements, as
these agreements can hinder the effective retention of care providers
once they leave the system. Provisions may include restrictions on the
duration of practice limitations and the geographic distance from prior
employment. These agreements have identifiable adverse effects in both
the labor and economic sectors of New York State, ultimately preventing
workers from seeking employment outside their current practice, discour-
aging entrepreneurship, and enabling employers to take advantage of a
workforce constrained in employment.
Several states have placed bans or heavy restrictions on non-compete
agreements in the healthcare sector, including but not limited to Cali-
fornia, Minnesota, North Dakota, Oklahoma, Montana, and Wyoming. This
bill would take similar approaches, aiming to restore continuity of care
across New York State. The Center for Health Workforce Studies (CHWS)
has reported shortages for a variety of professions across all health
care settings, specifically including RNs, LPNs, and medical assistants.
To regain a competitive position in the health industry, New York needs
to ban non-compete agreements for all healthcare workers.
 
PRIOR LEGISLATIVE HISTORY:
None.
 
FISCAL IMPLICATIONS:
Undetermined
 
EFFECTIVE DATE:
This act shall take effect on the thirtieth day after it shall have
become a law and shall be applicable to contracts entered into or modi-
fied on or after such effective date and shall have no retroactive
effect; provided, however, that section two of this act shall take
effect on the one hundred eightieth day after it shall have become a
law. Effective immediately, the addition, amendment, and/or repeal of
any rule or regulation necessary for the implementation of this act on
its effective date are authorized to be made and completed on or before
such effective date.