New York’s governor vetoed a bill days before Christmas that would have banned noncompete agreements, which restrict workers’ ability to leave their job for a role with a rival business.
Gov. Kathy Hochul, who said she tried to work with the Legislature on a “reasonable compromise” this year, called the bill “a one-size-fits-all-approach” for New York companies legitimately trying to retain top talent.
“I continue to recognize the urgent need to restrict non-compete agreements for middle-class and low-wage workers, and am open to future legislation that achieves the right balance,” she wrote in a veto letter released Saturday.
The veto is a blow to labor groups, who have long argued that the agreements hurt workers and stifle economic growth. The Federal Trade Commission had also sent a letter to Hochul in November, urging her to sign the bill and saying that the agreements can harm innovation and prevent new businesses from forming in the state.
Non-competes for top tier jobs make sense, as the company invested a lot of money into the person and it wouldn’t be fair to have them poached for no cost by a rival. All tech companies make software engineers sign non-competes.
They are employees, not indentured servants.
The financial risk should be on the corporation, and not on the employee. Corporations are the ones that are going to make the most money, between the two.
I’d argue that big tech doesn’t invest in its workers because they look for top-tier candidates already. Also, it is way too easy for companies to abuse non-competes. People shouldn’t be forced out of their industry because they left a bad employer.
All software engineers do NOT sign non-competes. I’ve been in the field for 25 years…closest I ever signed was a NDA