New York Governor Vetoes Noncompete Ban

Move seen as victory for business groups, despite criticism from labor groups and the FTC

New York Governor Kathy Hochul has vetoed a bill that would have banned noncompete agreements, which restrict workers' ability to leave their job for a role with a rival business.
The veto is seen as a victory for business groups and Wall Street, who argued that the agreements are necessary to protect investment strategies and prevent highly-paid workers from leaving with inside information.
However, labor groups and the Federal Trade Commission (FTC) have criticized noncompete agreements, arguing that they hurt workers, stifle economic growth, and hinder innovation.
Approximately 1 in 5 American workers, nearly 30 million people, are currently bound by noncompete agreements.
The FTC has estimated that banning noncompete agreements could increase workers' earnings by approximately $250 billion to $296 billion per year.