On December 22, 2023, Governor Kathy Hochul vetoed a bill proposing a comprehensive ban on noncompete agreements in employment in New York.
PHOTO: Mike Groll/Office of Governor Kathy Hochul
The governor called for modifications to the legislation to strike a balance between protecting middle-class and low-wage workers from unfair noncompete agreements while acknowledging the legitimate interests of companies, particularly in the State's highly competitive economic climate. Emphasizing her commitment to banning noncompete agreements for those earning below the median wage, Governor Hochul highlighted the need for a tailored approach that considers the diverse industries in New York. The governor had long supported limits on noncompete agreements for middle-class and low-wage workers, aiming to safeguard their ability to earn a living without hindrance. The veto followed the passage of a noncompete ban by New York lawmakers in June 2023.