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.
Why do these companies never get it? You want to retain talent… you gotta pay to retain that talent.
More accurately, you want your experienced and proprietary-knowledge-laden people to not take that stuff elsewhere…. Gotta pay them what they’re worth.
Can’t keep lowballing the pay raises, and expect people to not shop around,
companies legitimately trying to retain top talent
Basically blacklisting them from their field for a year after leaving your company is not how you retain talent. Pay them better. Give them better health coverage or other benefits. Only being able to retain talent by basically threatening them if they leave is not a good look.
Cute how she's being likely being paid under the table by some lobbyists that benefits from said non-compete agreements. And even if not under the table, it's likely under the form of campain contributions, etc. Politics and capitalism mixed together brings the worst in both.
Nobody in their right mind would elect to veto something giving more rights to the working class without having some personal interests on the line.
You picked the wrong side, Governor.
How are contracts like this enforceable in the US? Like here you could have a clause like that but the moment you try to sue someone for working at a competitor the judge would just laugh at you and throw your ass out of court. You can't have just anything in a contract, just like if a contract breaks employment laws then it's not valid.
legitimately trying to retain top talent
"Trying to figure out how to pay their talent less"
Any chance of overturning the veto?
If you want to retain top talent, pay them, give them better working conditions, offer them fulfilment. Don't make it illegal for them to work elsewhere.
We need free markets and deregulation... until it inconvenieniences non-productive shareholders in the slightest or those dirty workers start getting a little uppity.
From this photo, this woman looks like the baddie from Men In Black 2.
Asshole.
Hope they have votes to overrule her veto.
The funny thing is then the rich companies spends millions on lawyers to say that poached employee's stuff was common knowledge and thereby not an NDA issue or trade secret.
You turn around and say I'm leaving but will say the same stuff that person said to the next employer and they'll sue with the same lawyers.
"It's ok if I do it but not if they do it"
Aren't non competes generally very difficult to enforce? The people I've known that have gotten in trouble with non compete agreements are those in management positions that engaged in very active poaching of their old teams within a specified time frame.
Also, given the nature of remote work and hiring, I kind of have a mixed feeling. What does this kind of state regulation in a VHO/WFH environment do to NY workers in a job market with flexible location? These regulations really should be at the federal level.
If I could just leave my current company and go to a different company that did the same thing it would be good for me if I wanted to move or make more money. The other company would probably not really make that much money.
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