New York Governor Vetoes Non-Compete Ban

Insights New York Governor Vetoes Non-Compete Ban Courtney M. Roman · New York Governor Vetoes Non-Compete Ban Maureen Bradley · February 13, 2024

In June 2023, the state legislature passed a bill calling for a broad prohibition on non-competes. However, on December 22, 2023, Governor Hochul vetoed the bill. The bill would have banned all non-competes and was the subject of much scrutiny and resistance.

For a bill to become law in New York, it must first be passed by the legislature and then signed by the governor. When a bill is passed, the governor has three options: (1) sign the bill, (2) veto the bill, or (3) make amendments. Here, the Governor attempted to make amendments before vetoing in the bill.

In a supposed attempt to reach a middle ground, Governor Hochul engaged in negotiations with the bill’s legislative supporters. Governor Hochul has indicated that while she supports some restrictions on non-compete provisions, such as the prohibition of mobility restrictions for lower and medium income earners, she does not support the banning of all non-competes. The Governor sought to incorporate both a salary threshold of $250,000.00 for the use of non-competes and an exception for sale-of-business situations. Legislative supporters were unwilling to make these changes to the original bill; therefore, a stalemate was reached, which resulted in Governor Hochul’s outright veto of the bill.


Rimon’s employment law and executive compensation and benefits attorneys provide counseling advice as well as representation in litigation on a range of employment matters globally. Read more here: Employment Law, Employee Benefits and Executive Compensation – Rimon Law

This summary is provided for informational purposes only and is not intended to constitute legal advice nor does it create an attorney-client relationship with Rimon, P.C. or its affiliates. Prior results referred to in these materials do not guarantee or suggest a similar result in other matters.