MFA submitted a comment letter to the New York State Legislature’s regarding the passage of New York Senate Bill S03100-A (the “Act”), an act to amend the labor law, in relation to prohibiting non-compete agreements and certain restrictive covenants. In the letter, MFA outlines concerns regarding the Act’s broad scope, which would significantly increase the burdens on organizations while impeding their ability and legitimate need to protect their intellectual property and proprietary interests.
MFA argues that NCAs are necessary to safeguard confidential information and investment strategies and to foster innovation and competition in the industry. Additionally, MFA highlights that confidentiality, non-disclosure, and non-solicitation agreements do not offer the same level of protection as NCAs and may lead to costly litigation to address breaches of proprietary information. MFA proposes specific chapter amendments, including exemptions for highly compensated individuals, forfeiture-for-competition agreements, and certain partners and business owners.
MFA urges the governor to consider proposed amendments to strike a balance between protecting workers and promoting economic growth in the financial sector.