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.

  • ersatz
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    11 months ago

    For example, the sandwich chain Jimmy John’s previously came under scrutiny for forcing its low-wage workers to sign noncompete agreements that prevented them from working for a nearby business for two years after they left.

    Jesus, they basically want slavery. They want workers to be completely dependent on them to the point that you legally can’t go work at a different sandwich shop. I’ve only eaten there once and it was mediocre, but I’ll never step foot in there again. What the fuck.

    • Flying Squid@lemmy.world
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      11 months ago

      Why the fuck do they even need a non-compete clause for a sandwich shop? Are they worried people are going to reveal their secret Jimmy Johns technique for putting salami on bread to Subway?

      • jonne
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        11 months ago

        It’s legal for them to do so, and if employees can’t go to a competitor, it has the effect of depressing wages.

        Non-compete clauses make sense for certain higher level employees (and usually involve some sort of garden leave payment too) but corporate America has started to slip all sorts of bullshit into standard employment contracts just because they can.

        • Maggoty@lemmy.world
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          11 months ago

          I don’t even think it makes sense for them anymore. You either retain them with pay and job satisfaction or not. This idea that corporations can own experience is bullshit.

          • ThatWeirdGuy1001@lemmy.world
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            11 months ago

            Kinda like the whole Disney artist thing.

            Any character you create while working for Disney is Disney property. Even if it was a quick sketch done on a napkin. Even if the character doesn’t even have a name.

        • TipRing@lemmy.world
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          11 months ago

          It’s not just to depress wages, preventing worker mobility also lets you abuse them in other ways like rotating schedules (which also prevent workers from holding multiple jobs or going to school), bad work environments and wage theft.

          It’s not surprising that companies are increasingly abusing the workforce, it’s surprising that workers haven’t started organizing to fight back.

      • variaatio@sopuli.xyz
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        11 months ago

        It isn’t about need, but about want. Every extra notch of control they can get over workers employment opportunities, they want.

    • Maggoty@lemmy.world
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      11 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.

    • derf82@lemmy.world
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      11 months ago

      Ah yes, workers might take those precious trade secrets of (checks notes) how to make a sandwich.

    • circuscritic@lemmy.ca
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      11 months ago

      Not slavery, serfdom.

      Which is technically better then slavery for the serfs, but conveniently is also significantly cheaper for the landed gentry/capital class as they don’t have to feed or house their serfs.

    • TheHotze@lemmy.world
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      11 months ago

      I thought it was a federal law, but it might just be in my state, but I thought for a non-compete to be valid, the employee has to be compensated for it?

      • BreakDecks@lemmy.ml
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        11 months ago

        I don’t know of any circumstance where you would be specifically compensated for a non-compete, but in my state they aren’t valid unless you make a certain base compensation, which is currently about $125k/year.

    • AllonzeeLV@lemmy.world
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      11 months ago

      Why do you think political bribery is so rampant and expected in the US?

      Our politicians are almost exclusively paid middle managers for the owners. DC works for Manhattan and Silicon Valley.