Big news: NY Governor rejects complete noncompete ban

If you’re reading this, you have likely been following this year’s legislative machinations about noncompetes in New York and perhaps elsewhere (most notably California and Minnesota).

The big news is that New York will not be the fifth state with a wholesale ban on noncompetes.

New York’s Governor Hochul is neither persuaded by nor hiding behind the rhetoric and political expediency of a ban of noncompetes.

Instead, as predicted, she is sticking by what she said all along: Insulate low-wage and middle-wage workers from noncompetes to protect their mobility, but recognize that noncompetes serve legitimate business purposes and can still be used for others.

Expect to see a revised bill.

More to follow as we get more information.

 

*Thank you Erika Hahn for finding a discussion about this from our friends at Epstein Becker & Green (our former firm), David Clark and Erik Weibust, citing to a Bloomberg article breaking the news.