SHRM Urges a Balanced Approach to Noncompete Agreements in New York

The New York State Assembly may consider future legislation regulating the use of noncompete agreements, and your voice matters now. While no formal bill has been introduced yet, engaging early will help ensure a measured approach that protects employers and workers without stifling innovation.

In December 2023, Governor Kathy Hochul vetoed Senate Bill S3100A, which would have prohibited the use of noncompete agreements and made New York the second most populous state to ban noncompete agreements (after California). While new legislation is expected this year, we want to ensure it avoids a similar one-size-fits-all approach that could harm both businesses and workers. We need your help to advocate for a balanced solution that protects both parties and urge lawmakers to consider less restrictive alternatives.

SHRM recognizes the need to protect worker mobility and supports promoting a well-functioning labor market where workers can earn higher wages. We also support allowing employers and appropriate workers to consent to well-structured noncompete agreements. SHRM believes that blanket bans on noncompete agreements stifle innovation, limit an employer’s ability to offer training opportunities and harm businesses and workers alike.

We ask that you send a letter to your representatives in the New York State Assembly, and we encourage you to include a story from your workplace to make the point about how equitably drafted noncompete agreements with appropriate workers must remain permissible.

If you would like to become further involved in this campaign, please contact Sean McIntosh, Senior Advisor, State Government Relations at sean.mcintosh@shrm.org for assistance or additional information.