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.

  • Savaran
    5•5 months ago

    Non competes, are not NDAs. But even beyond that people should recognize that businesses in the end will go where they must to hire the folks they need to get the job done. They might throw a temper tantrum or two along the way about having to pay people or why can’t they have non compete slaves, or what do you mean you won’t come to the office, but in their own interests of making money they will eventually go where they must.