New York’s governor vetoed a bill days before Christmas that would have banned noncompete agreements, which restrict workers’ ability to leave their job for a role with a rival business.

Gov. Kathy Hochul, who said she tried to work with the Legislature on a “reasonable compromise” this year, called the bill “a one-size-fits-all-approach” for New York companies legitimately trying to retain top talent.

“I continue to recognize the urgent need to restrict non-compete agreements for middle-class and low-wage workers, and am open to future legislation that achieves the right balance,” she wrote in a veto letter released Saturday.

The veto is a blow to labor groups, who have long argued that the agreements hurt workers and stifle economic growth. The Federal Trade Commission had also sent a letter to Hochul in November, urging her to sign the bill and saying that the agreements can harm innovation and prevent new businesses from forming in the state.

  • Maggoty@lemmy.world
    link
    fedilink
    arrow-up
    16
    ·
    10 months ago

    Fun fact, there are franchise owners for all the big names that do this. McDonald’s, Pizza Hut, etc. It’s not usually a corporate decision.

    Related, there are chains that won’t hire from each other. They maintain a gray list of previous employees and you can only get hired back at your original location.

    • AlecSadler@sh.itjust.works
      link
      fedilink
      arrow-up
      4
      ·
      10 months ago

      McDonald’s et al corporate level don’t care if franchisees do this? I mean, I can see them not caring…but I could also see them trying to score social points by pretending to care and claiming they disallow it.