A bill that would have prohibited non-compete agreements and certain restrictive covenants in New York and authorized covered individuals to bring a civil action in a court against any employer or persons alleged to have violated the prohibition was vetoed by the governor on December 22, 2023. This follows months of debate and intense lobbying from both sides of the issue in which the governor expressed a preference for setting an earnings threshold in which employees making over $250,000 per year may be subject to a non-compete agreement while such agreements for lower wage earners would be banned.
Next Steps
The future of non-compete agreements in New York is uncertain. The governor expressed openness to future legislation that achieves a “right balance” between protecting workers and supporting businesses. New proposals will likely be introduced in the next legislative session.
HR Works will continue to monitor this topic and provide updates as they become available.
