By Joshua Solomon | Times Union, Albany
Albany, N.Y. — Gov. Kathy Hochul hinted at a desire to ban employers from using noncompete agreements for workers who make less than $250,000 per year, but leaving the option in place for higher earners.
The governor’s remarks Thursday were the strongest indication to date that she is interested in accepting the controversial bill as long as there is a carve-out for wealthier New Yorkers, an accommodation that is reportedly desired by the Partnership for New York City, the influential group that lobbies for pro-business measures.
“I have to strike the balance to make sure we take care of lower- and middle-income workers, up to say $250,000, and also then know that those at higher levels are very well-equipped to negotiate on their own behalf,” Hochul said. “And I want to make sure the businesses stay (in New York).”
The state Business Council’s nonprofit arm recently executed a $1 million campaign that argues the legislation would shatter New York’s economy by driving businesses out of the state.
At the same time, a group called Fight Corporate Monopolies, a left-leaning entity associated with a liberal economic think tank, began a $20,000 campaign this week in support of the bill.
Neither group has registered as lobbyists or disclosed who is funding its campaigns — although Fight Corporate Monopolies said it intends to register with the state’s Commission on Ethics and Lobbying in Government.
A noncompete agreement prohibits an employee from working for a competitor or opening a competing business, typically for a certain period of time after an employee leaves a job, according to the state attorney general’s office.
“One of my values, one of my priorities is to protect low- and middle-income New Yorkers,” Hochul said Thursday in Manhattan. “Protect them, give them mobility so they can have a better-paying job and be able to have that flexibility.”
But, she said, “I’m not so worried about the very wealthy, well-taken care of, Wall Street, hedge fund, finance, top-paid lawyers. They can take care of themselves.”
The legal field is one of the few sectors in New York in which employers are generally barred from imposing noncompete agreements.
The bill’s sponsor, state Sen. Sean Ryan, D-Buffalo, previously told the Times Union that an exemption for high earners is a non-starter for him.
“It’s a principle: Do you want to improve the economy by eliminating noncompetes or do you want to get stuck in the status quo, which restricts economic growth? ‚” Ryan said a month ago. “There’s really no middle here.”
On Thursday, following Hochul’s remarks, Ryan pushed back against a blanket salary range as a threshold for an exemption. He pointed to differences in high wages based on industry or region.
“A salary threshold that restricts only high-end executives in a small upstate town could restrict every worker at a Manhattan tech company,” Ryan said in a statement. “One of the goals of this legislation is to encourage innovation and new business in New York. If there’s a compromise to be made, we need to make sure that it isn’t accidentally sweeping up mid-range employees and would-be entrepreneurs.”
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