Doing business in New York is pretty tricky. That goes for entrepreneurs, business owners, and employees all around. If it's not the sky-high taxes, it's all of the bureaucracy and red tape that makes accomplishing some tasks tedious at best.

A few members of the New York State Legislature have been observing this and were looking to make a change in state law that would have made things a little easier for workers. However, it seems that New York Governor Kathy Hochul didn't agree with the legislature.

Gov. Hochul Vetoes Non-Compete Clause Bill

New York State Assembly Bill A01278 / Senate Bill S3100A was passed and sent to the Governor. The Governor issued a veto on the bill, preventing it from becoming law.

The Governor issued a statement saying she tried to reach a reasonable compromise, but they could not get on the same page.

According to the New York State Attorney General, a non-compete agreement is a contract or clause in a contract that prohibits an employee from working for a competitor or opening a competing business, typically for a certain period of time after an employee leaves a job.

Over the last few years, the NYAG has ended the enforceability of what they consider overly broad, non-complete clauses, but the agreements themselves remain legal in New York. This is something that members of the New York State Senate and Assembly sought to change.

The bill had received major support from labor unions, worker advocacy groups, and even the Federal Trade Commission, but it also had a large pushback from the business community, which was trying to kill this bed.

We're going to have to wait and see if the Governor and Legislature can start negotiating this again.

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