Regulating covenants not to compete for freelance workers.

A Local Law to amend the administrative code of the city of New York, in relation to regulating covenants not to compete for freelance workers

The use of non-compete agreements in contracts for freelance work, especially in the fashion industry, can lead to unreasonable restrictions on freelancers being able to find new work. This bill would prohibit persons from requiring freelance workers to enter into non-compete agreements unless the hiring party agrees to compensate the freelance worker during any period in which a non-compete agreement would restrict the freelancer from seeking other work. This bill would also create a private right of action allowing freelancers to seek a declaratory judgment finding a non-compete agreement void and grant the Office of Labor Standards enforcement authority. The Corporation Counsel would also be able to investigate and sue hiring parties who exhibit a pattern or practice of violations in this case.