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New York Governor VETOED Bill That Would Ban Non-Compete Agreements (and Provisions)

15 Jan



Update Applicable to:  Effective date
  All employers and businesses operating in New York    See details below

What happened?

On December 22, 2023, New York State Governor Kathy Hochul vetoed the bill that would practically ban all non-competition agreements and provisions for workers in New York regardless of earning level. Employers should expect a revised bill to be introduced next year.

What are the details?

On June 30, 2023, the New York State Legislature passed a bill that, if signed into law by Governor Kathy Hochul, will prohibit almost all new non-competition agreements for workers. However, the bill was vetoed by the Governor because she and the sponsors of the bill did not agree on the limit and how bonuses and stocks would be counted towards said limit.

The bill as it was vetoed, is a blanket ban on all non-compete agreements and provisions in a contract for all earning levels (including business sales). The governor and industry agree that a ban for workers earning less than the median wage would be appropriate.

Business Considerations

  • For now, non-competes are still a useful tool, but be prepared for an amended bill somewhere in 2024.
  • Prepare and review your practices with an employment attorney to strategize an alternative to protect your interests.


Source References

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This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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