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.

  • csm10495
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    11 months ago

    The funny thing is then the rich companies spends millions on lawyers to say that poached employee’s stuff was common knowledge and thereby not an NDA issue or trade secret.

    You turn around and say I’m leaving but will say the same stuff that person said to the next employer and they’ll sue with the same lawyers.

    “It’s ok if I do it but not if they do it”