New York Coalition Celebrates Worker Victory on Non-Compete Ban

NEW YORK – Today, Gov. Kathy Hochul signed historic legislation that will ban non-compete clauses for most workers across New York State. A coalition made up of of workers’ rights organizations, unions, economic experts, and healthcare and tech groups celebrated the new law, which was championed by state Senator Sean Ryan from Buffalo, and released the following statements:

“Today, New York is making history as the fifth state to bar most employers from locking workers into jobs with non-competes, creating momentum for a long-overdue national ban as the Federal Trade Commission has proposed,” said Paul Sonn, State Policy Program Director at the National Employment Law Project. “For too long, New York workers have been hurt by these abusive ‘agreements’ that prevent them from leaving to take a better job – or to escape an abusive work situation. With this ban, we’ll all benefit as companies are forced to raise pay to retain workers, workers with good ideas are able to launch new start-ups, and doctors are able to keep seeing their patients when they change jobs. Kudos to Senator Sean Ryan and the broad coalition of workers, unions, and economic experts that led the campaign to end non-competes in New York.”

For too long, New York workers have been hurt by these abusive ‘agreements’ that prevent them from leaving to take a better job.

“New York’s non-compete ban is a major accomplishment that will make a concrete difference in the lives of scores of workers and innovators across the state, providing them the freedom to change jobs, negotiate for better pay, and start new businesses,” said Pat Garofalo, Director of State and Local Policy at the American Economic Liberties Project. “Gov. Kathy Hochul should be commended for standing with labor unions, small business groups, medical professionals, and ordinary people all across the state and signing this bill into law, despite fierce opposition from Wall Street lobbyists and major corporate interests. We also applaud Sen. Sean Ryan for his steadfast support of this bill in the face of an onslaught of misinformation and lobbying money from big corporations invested in the status quo. His example is one other legislators across the country should follow.”

“For far too long, non-compete agreements have exploited employees, stifled small businesses, and driven up consumer prices on everyday products and services across the state,” said Helen Brosnan, Executive Director of Fight Corporate Monopolies. “By signing this commonsense non-compete ban into law, Gov. Hochul has not only made historic progress for working-class New Yorkers, she’s also made it clear that she stands with her constituents over even the most powerful corporate interests. We are grateful for Senator Ryan’s relentless push for this legislation – ignoring cries from Wall Street and corporate executives to water down the bill.”

“We applaud Gov. Hochul for signing this historic bill into law,” said Brian Callaci, Chief Economist of the Open Markets Institute, an antimonopoly think tank. “It represents a major accomplishment for New York, and will help to secure New York’s status as both a dynamic economy that fosters new business creation, and as a leader in the protection of worker rights.”

“An inclusive labor market is integral to corporate long-term value,” said Marcela Pinilla, Director of Sustainable Investing with Zevin Asset Management. “Not only is there an unequivocal business and economic case for banning non-competes, but ample evidence demonstrates that non-compete clauses perpetuate racial/ethnic and gender wage gaps by systematically suppressing the wages of non-white workers. For long-term institutional investors, removing the artificial barrier of non-competes can protect and enhance shareholder value and is responsive to needs workers have long advocated for.”

NELA NY President Laurie Morrison stated, “This historic bill will launch a new era in New York law. Opening much of the state’s labor market to vigorous competition will benefit workers and businesses both. We applaud the efforts of the bill’s sponsors, Senate and Assembly leadership and Gov Hochul in taking these crucial steps.”

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