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Latest Compliance News

New York Limits Employer Rights to Employee Inventions

10/05/23

Author: ADP Admin/Wednesday, October 4, 2023/Categories: Compliance Corner

New York has enacted legislation (Assembly Bill A5295), which limits an employer's rights to an employee's invention. Assembly Bill A5295 is effective immediately.

The Details

Under the law, a provision in an employment agreement that requires an employee to assign (or offer to assign) any rights of their invention to their employer is unenforceable if the employee:

  • Developed the invention entirely on their own time; and
  • Did not use their employer's equipment, supplies, facilities or trade secret information.

Exceptions

The law does not apply to inventions that:

  • Result from any work performed by the employee for the employer; or
  • Relate at the time of conception (or when brought to physical form) to the employer's business, or actual or demonstrably anticipated employer research or development.

Next Steps

  • Consult legal counsel to discuss the impact of Assembly Bill A5295 on your business.
  • Train supervisors on the changes under the law.