The New York Labor Law has recently faced significant changes that will affect all corporations in the state. New York Governor Kathy Hochul signed a new section into law on September 15, 2023, which limits the assignment of inventions by employees to their employers.
In accordance with a brief provided by Jackson Lewis P.C., the new law, specifically Section 203-f of the Labor Law, renders unenforceable provisions in employment agreements that mandate employees to assign certain inventions to their employer. These are mainly inventions which are developed using the employee’s own property and time.
This development in labor law is significant for all corporations and law firms. It should prompt an immediate review of existing employment contracts, especially those dealing with intellectual property rights and invention assignments.
Employers will now need to consider the limitations that this new law places on the assignment of inventions. These restraints can potentially affect an employer’s control over the inventions that an employee creates or develops during their time of employment, especially if the employee uses their own resources and time.
This law serves as another significant reminder of the critical role that legal professionals play in guiding companies through the ever-changing legal landscape, ensuring that organizations stay abreast of new developments and remain compliant with legal standards in the jurisdictions they operate in.
Given the importance of this new law, all legal professionals are recommended to familiarize themselves with the details of the legislation and consider its implications for their clients or employers.