New Yorkâs governor vetoed a bill days before Christmas that would have banned noncompete agreements, which restrict workersâ 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 âreasonable compromiseâ this year, called the bill âa one-size-fits-all-approachâ for New York companies legitimately trying to retain top talent.
âI 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,â 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.
