On November 30, 2023, Governor Kathy Hochul announced that she would not be signing proposed legislation that would prohibit employee non-compete agreements in New York.

As we previously reported, on June 7, 2023, the New York State Senate passed Bill No. S03100 (the “Bill”), which would amend the New York Labor Law to ban the use of non-compete agreements between employers and employees. Governor Hochul felt as though changes would have to be made to the bill before she would sign it. She told reporters, “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 … 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.”

In order to achieve this balance, Governor Hochul would like any amendment to the bill to include a sale-of-business exception and potentially a $250,000 salary threshold for when employees could be subject to non-competes.

In light of her comments to the press, it is likely that there will be amended versions of the bill resubmitted. We will continue to monitor further developments and will provide updates as they become available.

Should you have any questions or need assistance with submission process, please contact Ali Law Group.