Last week, the New York State Senate advanced two bills seeking to ban both “no-poach” clauses in franchise agreements and “no-rehire” clauses, which are commonly used in settlement agreements.
The first of these bills, known as the End Employer Collusion Act (Bill S562), prohibits no-poach agreements between franchisors and franchisees. Such agreements restrict franchisees from soliciting or hiring current or former employees of the franchisor or other franchisees. The End Employer Collusion Act would also provide a private right of action for any person denied employment on account of a no–poach agreement, and would allow for the recovery
Continue Reading New York State Legislature Aims to Prohibit Use of No-Poach and No-Rehire Clauses