Employers would face limits on restricting healthcare workers’ next jobs

Employers and their agents could not seek, require, demand, or accept agreements restricting covered workers’ employment after they leave. Coverage includes doctors and other specified licensed healthcare workers who depend economically on the employer and must perform work for it. Exceptions would cover sales of business goodwill, meaning its reputation and customer relationships, or a majority ownership stake, involving an owner holding at least 15%. The rules would apply to contracts entered into or modified on or after the 30th day after enactment, without applying retroactively.

Allowed agreements would have to provide salary payments while enforced and limit job restrictions to one year. These requirements would cover any healthcare agreement restricting employment after departure that this section allows. Restrictions must be reasonable in their length, geographic area, and reach and go no further than needed to protect a legitimate business interest. They must not unfairly burden the worker or harm the public. These requirements would apply to contracts entered into or modified on or after the 30th day after enactment.

Covered workers could ask a court to cancel prohibited agreements, stop violations, and award money and legal fees. Covered healthcare workers could sue employers or other people over violations involving contracts entered into or modified on or after the 30th day after enactment. If a court finds a violation, it would have to award additional damages of up to $10,000 to each affected covered worker. Workers would have two years to sue from the latest of signing the agreement, learning about it, the work relationship ending, or an employer taking an enforcement step.

Contract terms choosing another law or court location could not be enforced to avoid or limit these protections. Coverage includes remote workers outside New York who report to a New York office, worksite, or New York-based supervisor. The worker must have lived in New York or been employed there for at least the 30 days immediately before employment ended. This rule would apply to contracts entered into or modified on or after the 30th day after enactment.