AG push for job freedom

ALBANY — With the White House estimating that noncompete clauses hamper one in five workers from switching jobs, state Attorney General Eric Schneiderman called for legislation to ban the handcuffing provisions for thousands of job seekers.

Bosses are increasingly requiring new employees to pledge that they will not take positions with competing firms, thus freezing workers from advancement.

Schneiderman announced plans Tuesday to introduce legislation that would ban use of the agreements for low-wage employees — defined as workers earning less than $900 a week, the federal threshold — and place greater restrictions on their use for other workers as well.

The agreements prevent employees from taking positions with rival businesses for preset periods of time after they leave their current jobs.

“Workers should be able to get a new job and improve their lives without being afraid of being sued by their current or former employer,” said Schneiderman.

In addition to banning their use for low-wage workers, Schneiderman’s proposal would prohibit overly broad noncompete agreements that go beyond a business’ need to protect trade secrets and limit the amount of time they could remain in effect.

It would also require employers to provide extra compensation to workers who sign noncompete agreements and allow workers to seek damages if they signed one that was deemed unlawful.

Schneiderman’s announcement was part of a broader initiative launched by the White House on Tuesday to spur greater competition in the labor market. It included a “call to action” for states to ban noncompete agreements.

Schneiderman’s office did not have estimates on how many workers in New York would be affected.

Business and legislative leaders reacted cautiously to Schneiderman’s plans, saying they needed more information on what the attorney general is proposing.

The Legislature’s new session does not begin until January.

In recent months, Schneiderman’s office has reached settlements with sandwich chain Jimmy John’s, legal news site Law360 and the medical services company EMSI to stop using noncompete agreements.

Workers should be able to . . . improve their lives without being afraid of being sued by their current or former employer. — STATE ATTORNEY GENERAL ERIC SCHNEIDERMAN