On December 22, 2023, Governor Kathy Hochul vetoed the bill New York lawmakers delivered to her, which proposed a ban of nearly all types of noncompete agreements in employment. In so doing, she called for modifications to the legislation that would protect “middle-class and low-wage workers” from noncompete agreements, while balancing companies’ interests in using such agreements with higher-wage earners.

Quick Hits

• The governor vetoed the noncompete ban bill, calling for modifications that would prohibit employers from imposing noncompete agreements on middle class and low-wage workers.
• Given New York’s “highly competitive economic climate,” she noted, “the Legislation’s one-size-fits-all approach” could not meet companies’ legitimate interests.
• The governor reiterated her commitment to “banning non-compete agreements for anyone making below the median wage in New York.”

New York lawmakers had passed a noncompete ban in June 2023 and delivered it to the governor on December 12, 2023. In vetoing the bill, Governor Hochul noted that she has “long supported limits on non-compete agreements for middle-class and low-wage workers, protecting them from unfair practices that would limit their ability to earn a living.”

She further emphasized that, in connection with the bill, her “top priority was to protect middle-class and low-wage earners, while allowing New York’s businesses to retain highly compensated talent. New York has a highly competitive economic climate and is home to many different industries.”