New York Governor Vetoes Legislation Banning Non-Competes

On Dec. 23, New York Governor Kathy Hochul vetoed legislation that would have prohibited non-compete agreements in employment contracts. Non-compete agreements prohibit an employee from taking a new job or starting a business for a period after leaving an employer.  The New York bill would have applied to almost all workers and employers and had no exemption for high earners.

The Governor cited her objection to the "one size fits all" approach of the bill and had unsuccessfully negotiated with the bill sponsors to include a carve out for high earners. Without the carve out, business groups had urged a veto. A modified version of the bill is expected to be introduced in 2024.

Here in New Jersey, the NJCPA is working with a broad coalition to oppose a similar bill that places a defacto ban on restrictive covenants in employment contracts. The bill is unlikely to pass in the current legislative session that expires on Jan. 8, but will likely be reintroduced later in the year. Stay tuned for updates.

For more on this topic, read The Changing Landscape of Non-Competes and Restrictive Covenants.

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Jeffrey Kaszerman Jeff Kaszerman is the vice president of government relations for New Jersey Society of CPAs. He works with the CEO and board of trustees to create and implement advocacy initiatives that protect and promote the interests of the CPA profession, the business community and the public. More content by Jeffrey Kaszerman: Keeping Things Positive: Working to Improve New Jersey’s Business Environment Analyzing Governor Murphy’s Budget Proposal Are 150 Hours Too Many? Bills to Improve New Jersey’s Professional Licensing Boards Reintroduced TCJA Sunset Countdown: Plan Now for Expiring Provisions A CPA/Senator’s View on New Jersey’s Legislative Landscape How to Save on New Jersey Property Taxes Where Are All the Accountants?? Learn more from Jeffrey Kaszerman: 5/3/24 - Accounting Educators Workshop