Big News in New York: Governor Backs Changes to Job Rules!

Governor Kathy Hochul wants to concentrate on the state’s proposed non-compete agreement prohibition.

Katy Hochul (Photo: Google)

Navigating Non-Compete Laws for Different Income Levels

Governor Kathy Hochul supports a non-compete restriction for low- to middle-wage workers but allows higher-wage workers to be subject to it. This means that New York’s planned law banning all non-compete agreements won’t pass.

Rapid Strikes

• According to her statements, Governor Hochul would be in favor of legislation that would require employees earning at least $250,000 per year to sign non-compete agreements.
• Recent events have resulted in the governor’s decision to reject a measure that would have prohibited all non-compete agreements.

On June 7 and June 20, 2023, respectively, the New York State Senate and Assembly enacted a measure intending to prohibit any non-compete agreements; however, Governor Hochul did not sign the law.

READ ALSO: New York State Assembly Passes Non-Compete Bill

Governor Hochul’s Call for Balance

In a statement made on November 30, 2023, she emphasized the need to strike a balance between safeguarding workers with low and intermediate incomes and providing flexibility. Not only did Governor Hochul suggest that workers earning at least $250,000 might still be subject to non-compete agreements, but he also emphasized the significance of bargaining leverage for successful people working in critical sectors of the economy of New York.

Governor Hochul’s statements suggest New York companies might anticipate non-compete statute changes.

READ ALSO: New York State Senate Passes Prohibitions on Non-Competes