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What kind of impact do non-competes have on New York workers?

Next week, a public hearing led by State Senators Sean Ryan and Jessica Ramos will delve into the impact of non-compete agreements on workers and the labor market in New York.

The hearing aims to explore how these agreements shape the workforce and affect New Yorkers. Ryan, who regards non-compete clauses as a constraint not only on senior executives but also on workers across various industries, anticipates the hearing will expose the detrimental effects such agreements have on competition and worker mobility.

In response to these concerns, Ryan has proposed legislation to nullify and prohibit non-compete agreements. Conversely, the Business Council of New York has historically resisted such efforts, asserting that these agreements are occasionally necessary and are not implemented lightly by employers.

They argue that rescinding non-compete clauses would unduly burden businesses. This comes at a time when the Federal Trade Commission is considering a rules change to prohibit non-compete agreements, further highlighting the ongoing debate on this issue.