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Governor Hochul Vetoes Non-Compete Bill

We reported previously about a bill which would have effectively banned employee non-compete agreements (a.k.a., non-competes) in New York. This bill passed the New York Assembly and Senate earlier this year but had been sitting on Governor Hochul's desk awaiting further action.

It was just announced that the Governor vetoed this bill. Proponents of the bill reportedly attempted to negotiate a compromise which would have protected employees who earned less than a set wage.  This bill was strongly opposed by business interests.

Even though this bill was vetoed, New York courts will continue to closely scrutinize non-competes to determine if they are reasonable in time and distance and needed to protect the employer's legitimate business interests.  Also, recent court decisions indicate that a non-compete will likely not be enforced against an employee who is terminated without cause.

The attorneys at Colligan Law are very experienced in advising clients on non-compete agreements and litigating non-compete cases.  Please let us know if we can assist you.