On December 22, 2023, Governor Kathy Hochul vetoed a bill which, if signed into law, would have imposed a ban on non-compete agreements throughout the state, without exception. The bill, which we previously covered here, would have prohibited employers from "seeking, requiring, demanding or accepting" a non-compete, not just enforcing one, and left unanswered several important questions which have been the subject of debate.

Governor Hochul stated that she attempted to negotiate a compromise with lawmakers before vetoing the bill, but was unable to do so. The bill's sponsor indicated the legislature would return with a new proposal.

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