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.
Non-competes for top tier jobs make sense, as the company invested a lot of money into the person and it wouldn’t be fair to have them poached for no cost by a rival. All tech companies make software engineers sign non-competes.
as the company invested a lot of money into the person and it wouldn’t be fair to have them poached for no cost by a rival.
They are employees, not indentured servants.
The financial risk should be on the corporation, and not on the employee. Corporations are the ones that are going to make the most money, between the two.
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.
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.
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.
Hope they have votes to overrule her veto.
