The Governor has rejected and will veto the noncompete ban proposed by the New York Legislature, despite urging from the Federal Trade Commission.
New York is continuing to move from a noncompete ban to some type of a wage threshold on noncompetes.
The FTC’s letter to Governor Hochul suggests that the FTC is leaning toward a full ban and is (quite properly) concerned about its own power to issue one.
New York is inching closer to some type of a ban on noncompetes, but New York’s Legislature has failed to address defects identified by Governor.
New York will not become the fifth state with a noncompete ban. New York’s Governor Hochul is neither persuaded by nor hiding behind the rhetoric and political expediency of a ban of noncompetes.
Before New York joins the ranks of California, Minnesota, North Dakota, and Oklahoma as the fifth state with a complete ban on employee noncompetes, I took the opportunity to write to NY Governor Hochul to explain why caution is warranted.