NY Noncompete Ban Needs Salary Cap Deal to Recover From Veto

The 11th hour veto of a noncompete clause ban by New York Gov. Kathy Hochul (D) has sent state legislators and powerful business groups back to the drawing board in 2024 to resolve the contentious issue of how to create a carve-out for highly paid workers.

New York was close to becoming the fifth state to outlaw noncompete clauses in virtually all employment contracts until Hochul declined Dec. 22 to approve the legislation (S3100) amid pressure from Wall Street, hospitals, and business groups. In her veto message, Hochul said the bill’s “one-size-fits-all” approach did not work in New ...