New York Limits Employee Invention Assignment Provisions
1 min read
Oct 24, 2023
Governor Kathy Hochul signed a bill into law last month that amended the New York State Labor Law by adding a new section (203-f). The law prohibits any clause in an employment agreement that requires employees to assign their inventions to their employer if the employee created them on their own time and without using the employer’s resources or trade secrets.
Specifically, the law states “[a]ny provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his or her employer shall not apply to an invention that the employee developed entirely on his or her own time without using the employer’s equipment, supplies, facilities, or trade secret information.”
The law does not apply to inventions that at the time of conception or reduction: (i) relate to the “employer’s business or actual or demonstrably anticipated research or development of the employer; or (ii) result from any work performed by the employee for the employer.”
Noticeably, the law does not create a private right of action. Still, the law does deem any provision in an employment agreement that is outside the scope of this law as unenforceable and against public policy.
3 Steps Employers Should Take Next
This labor law has already gone into effect, so employers should do the following:
- Revise their employment agreements to ensure that they comply with this law.
- Define and safeguard their trade secrets and ensure that they are confidential and not accessible to the public.
- Consider requiring employees to disclose prior inventions when they are hired.
Featured Insights

Press Release
Oct 22, 2025
Hinshaw & Culbertson LLP Launches New Website and Refreshed Brand

Press Release
Sep 26, 2025
Hinshaw Recognized as a “Leader in Litigation” in the BTI Consulting Litigation Outlook 2026 Survey

Privacy, Cyber & AI Decoded Alert
Sep 23, 2025
Fall 2025 Regulatory Roundup: Top U.S. Privacy and AI Developments for Businesses to Track

Press Release
Sep 15, 2025
Hinshaw Achieves 2024–2025 Mansfield Rule Certification Plus Status

In The News
Sep 5, 2025
Jessica Riley Reflects in a Law360 Story on Lessons She Learned as a Junior Lawyer

Press Release
Aug 25, 2025
Trial Spotlight: Hinshaw Prevails in ERISA Fiduciary Fraud Case





