Legislation to Prohibit Non-Compete Agreements to be Considered by Governor
In late June, the New York State Assembly passed legislation (S.3100-A/A.1278-B) that had previously passed the State Senate that would prohibit the use of non-compete agreements by all employers in New York State. It will go before Governor Hochul for her consideration.
MSSNY has adopted policy that calls for legislation to prohibit non-compete agreements imposed by hospitals, health systems, and Management Service Organizations on their employed or affiliated physicians. In this regard, MSSNY has indicated its strong support for the concept of this legislation to prohibit non-compete agreements, particularly as it relates to their use by large health systems which may hold a dominant position in a particular region that could greatly impact healthcare worker mobility at a time when we already face significant shortages in many regions of the State. We have urged that the legislation be signed with a modest chapter amendment to exempt small community-based physician practices not located in Health Professional Shortage areas from its applicability.
This legislation goes much further than the proposed FTC rule because it would apply to non-profit employers, the primary form of business structure for hospitals and health systems in New York State.
