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Update on New York’s Proposal to Ban Non-Compete Agreements 

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.  

HR Works, headquartered in Upstate New York, is a human resource management outsourcing and consulting firm serving clients throughout the United States for over thirty years. HR Works provides scalable strategic human resource management and consulting services, including: affirmative action programs; benefits administration outsourcing; HRIS self-service technology; full-time, part-time and interim on-site HR managers; HR audits; legally reviewed employee handbooks and supervisor manuals; talent management and recruiting services; and training of managers and HR professionals.