Breaking news: NY Governor to veto noncompete ban

The year would not be complete without a decision from New York Governor Kathy Hochul on the proposed noncompete ban.

The Governor has rejected and will veto the extreme approach proposed by the New York Legislature, despite the urging from the Federal Trade Commission.

The big news is that New York will not be the fifth state with a wholesale ban on employee noncompetes.1

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.

But she and the Legislature were unable to find an acceptable compromise.

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[1] Those states are California, Minnesota, North Dakota, and Oklahoma. Nebraska says noncompetes are permitted, but true noncompetes are rare.

*Thank you to Erika Hahn for her extraordinary work helping me stay on top of all of the pending noncompete legislation around the country.