New York Gov. Kathy Hochul has vetoed a bill that would have banned all noncompetes, The Wall Street Journal reported Dec. 23.
The bill, which passed the Legislature in June, would have prohibited requiring a noncompete agreement, as well as voided existing noncompetes entered after the bill's effective date.
Ms. Hochul had previously said she wanted to see a compensation cap for the ban and floated $250,000 as a level above which noncompetes would be allowed. The bill she vetoed would have applied to all workers regardless of compensation.
"New York has a highly competitive economic climate and is home to many different industries," Ms. Hochul said in her veto statement. "These companies have legitimate interests that cannot be met with the legislation's one-size-fits-all approach."