New York governor vetoes bill that would ban noncompete agreements
New York governor vetoes bill that would ban noncompete agreements
New York Gov. Kathy Hochul has vetoed a bill days before Christmas that would have banned noncompete agreements, which restrict workers’ ability to leave their job for a role with a rival business.
New York’s governor vetoed a bill days before Christmas that would have banned noncompete agreements, which restrict workers’ ability to leave their job for a role with a rival business.
Gov. Kathy Hochul, who said she tried to work with the Legislature on a “reasonable compromise” this year, called the bill “a one-size-fits-all-approach” for New York companies legitimately trying to retain top talent.
“I continue to recognize the urgent need to restrict non-compete agreements for middle-class and low-wage workers, and am open to future legislation that achieves the right balance,” she wrote in a veto letter released Saturday.
The veto is a blow to labor groups, who have long argued that the agreements hurt workers and stifle economic growth. The Federal Trade Commission had also sent a letter to Hochul in November, urging her to sign the bill and saying that the agreements can harm innovation and prevent new businesses from forming in the state.
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Thank god for states with half a brain. Non-competes are illegal in my state and not enforceable.
In my country non-compete laws are extremely rational: if you want to enforce such a contract, pay the person what he could make at a competitor during the entire duration you want to prevent him from going to the competition.
It's not up to the State to pay unemployment for people because you don't want talent to go somewhere else. Pay up or STFU.
Idiot employers will still put silly non-compete clauses into their contracts to scare people but I just chuckle as they are unenforceable unless they want to pay me to stay "on the beach".