What's happening
This bill prohibits franchisors from making or enforcing agreements that restrict franchisees from hiring each other's employees.
Why it matters
Protects workers’ mobility. By voiding agreements that prevent franchise employees from being hired by other franchisees, the bill ensures workers are free to seek better jobs, higher pay, or improved working conditions within the same franchise network.
Levels the playing field for franchisees. Franchisees will be able to compete for qualified employees without fear of violating agreements, potentially reducing staffing shortages and enhancing service quality.
Gives employees legal recourse. Workers harmed by these restrictive agreements can sue for actual and punitive damages, and, if successful, recover attorneys’ fees—providing a strong deterrent against illegal collusion.
Empowers state enforcement. The Attorney General is explicitly authorized to investigate and act against violators, adding a public enforcement mechanism alongside individual lawsuits.
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Who cares
Franchise employees and former employees
The bill would void franchise-agreement restrictions on their recruitment or hiring by franchisees and let people harmed sue for actual damages, court-allowed punitive damages and, if successful, legal costs and reasonable attorney’s fees.
Franchisors
The bill would prohibit them and anyone acting on their behalf from entering into, renewing, enforcing or threatening to enforce these restrictive employment agreements.
Franchisees
The bill would remove franchise-agreement provisions that restrict them from soliciting or hiring employees or former employees of the franchisor or another franchisee.
New York attorney general
The bill would authorize enforcement under Executive Law section 63(12) when the attorney general believes a violation has occurred.
Headline styles
Ban No-Poach Agreements
Plain English, a few words. Used as the page title.
Sponsors
15 Co-sponsors
4 Multi-sponsors
History
- Amended on third reading 5776c
- Ordered to third reading cal.220
- Amended on third reading 5776b
- Advanced to third reading cal.252
- Reported
- Print number 5776a
- Amend and recommit to codes
- Reported referred to codes
- Referred to judiciary
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Ban No-Poach Job Deals
In Senate Committee · Rules · Sponsor Brad Hoylman-Sigal
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5776--C Cal. No. 220
2019-2020 Regular Sessions
IN ASSEMBLY
February 19, 2019
Introduced by M. of A. DINOWITZ, REYES, SAYEGH, GOTTFRIED, GALEF, D'URSO, STIRPE, ARROYO, SIMON, STECK, CRUZ, GLICK, ZEBROWSKI, ORTIZ, WEPRIN, FERNANDEZ -- Multi-Sponsored by -- M. of A. COOK, DenDEKKER, ENGLEBRIGHT, GRIFFIN -- read once and referred to the… Show allHide
Introduced by M. of A. DINOWITZ, REYES, SAYEGH, GOTTFRIED, GALEF, D'URSO, STIRPE, ARROYO, SIMON, STECK, CRUZ, GLICK, ZEBROWSKI, ORTIZ, WEPRIN, FERNANDEZ -- Multi-Sponsored by -- M. of A. COOK, DenDEKKER, ENGLEBRIGHT, GRIFFIN -- read once and referred to the Committee on Judiciary -- reported and referred to the Committee on Codes -committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- reported from committee, advanced to a third reading, amended and ordered reprinted, retaining its place on the order of third reading -- ordered to a third reading, amended and ordered reprinted, retaining its place on the order of third reading
AN ACT to amend the general obligations law, in relation to prohibiting agreements between employers that directly restrict the current or future employment of any employee
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. This act shall be known and may be cited as the "End Employer Collusion Act".
§ 2. The general obligations law is amended by adding a new section 5-338 to read as follows:
§ 5-338. Agreements between certain employers restricting the current or future employment of an employee void. (a) For the purposes of this section, the following term "restrictive employment agreement" shall mean any agreement that:
(i) is included in a franchise agreement; and
(ii) prohibits or restricts one or more franchisees from soliciting or hiring the employees or former employees of the franchisor or another franchisee.
(b) Notwithstanding any other law to the contrary, no franchisor or person acting on its behalf may enter into or renew a restrictive employment agreement, enforce a restrictive employment agreement, or
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04740-06-0
A. 5776--C 2
threaten to enforce a restrictive employment agreement and any restrictive employment agreement is hereby void.
(c) Every person who was denied employment due to a restrictive employment agreement or was otherwise damaged due to a violation of subdivision (b) of this section may maintain an action for damages equal to the sum of (i) any actual damages sustained by the individual as a result of such violation, (ii) such amount of punitive damages as the court may allow, and (iii) in the case of any successful action to enforce any liability under this section, the costs of the action together with reasonable attorney's fees as determined by the court.
(d) Whenever the attorney general believes that there has been a violation of this section, he or she may proceed as provided in subdivision twelve of section sixty-three of the executive law.
§ 3. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.