Since June of 2023, New York State lawmakers have voted to approve pro-employee legislation that will eliminate non-compete clauses from all NY contracts. But since November of 2023, NY Governor Hochul has been doing the corporate lobbyist dance.

What is a Non-compete Clause?

According to reporting by WIBX.com,

"A non-compete clause is a binding legal action that prohibits an employee from working for a competitor after employment at one business has ended. Depending on the agreement signed by an employee, the 'restrictive covenant' says that such employee will not work for or start a business in a profession or trade that compete with the employer for a specified amount."

Read More: New York Lawmakers Pass Non-Compete Legislation

Backstory of NY Non-compete Legislation

According to reporting by the Associated Press,

"More and more employers are requiring regular workers (not just CEOS and C-Suite Executives) to sign those deals. About 1 in 5 American workers, nearly 30 million people, are bound by noncompete agreements, according to the Federal Trade Commission.

Horror stories about companies using noncompete agreements to trap workers in middling jobs or punish them for taking their skills elsewhere for better pay prompted New York legislators to pass a bill last June that would ban noncompete agreements."

READ MORE: Business lobby attacks as New York nears a noncompete ban, rare in the US | AP News

Crain's New York Business is reporting that,

(The NY non-compete) "bill is now the subject of a fierce lobbying campaign that pits business groups against labor unions — as Gov. Kathy Hochul negotiates with lawmakers on a possible compromise."

READ MORE: New York non-compete bill ignites business battle as Hochul negotiates | Crain's New York Business (crainsnewyork.com)

Gov. Hochul had been mostly mum publicly about the legislation the NY Senate has been readying for her signature since June, but she did take time to address the reports about corporate lobbies, the impending law and what she's calling a compromise required for her to sign the legislation when it reaches her desk. On November 30, 2023 she told reporters the following:

1. “What I’m looking at right now is striking the right balance between protecting low and middle-income workers, giving them flexibility to have mobility to go from job to job as they continue up the ladder of success”
2. “I have to strike the balance to make sure we take care of lower- and middle-income workers, up to say $250,000, and also then know that those at higher levels are very well-equipped to negotiate on their own behalf”
3. “And I want to make sure the businesses stay [in New York]”
4. “But those who are successful have a lot more negotiation power, and they’re at the industries that are an important part of our economy here in New York”
5. “I’m not so worried about the very wealthy, well-taken care of, Wall Street, hedge fund, finance, top-paid lawyers. They can take care of themselves”

READ MORE: Governor Hochul Discusses NY NonCompete Agreements Law (natlawreview.com)

READ MORE: non-competes.pdf (ny.gov)

This is a developing story.