Albany, NY — Following news that the New York Senate has passed a bill to ban coercive non-compete clauses for the vast majority of workers across the state, the American Economic Liberties Project released the following statement.

“The New York Senate’s passage of a bill to ban non-compete agreements is a huge win for New York workers, entrepreneurs, and honest businesses,” said Pat Garofalo, Director of State and Local Policy at the American Economic Liberties Project. “Banning noncompete agreements will ensure corporations can’t use their power to trap employees in their jobs, push down wages across the board, and block small business and start-up formation. While workers making over $500,000 are exempt from this version of the ban, we are encouraged to see that this exemption does not apply in the healthcare industry, where non-competes not only harm individual workers, but the health and wellbeing of entire communities. The Assembly should advance this legislation to Gov. Hochul’s desk without delay.”

Non-compete agreements are one-sided arrangements that trap employees in lower-paying jobs and restrict their career mobility. They affect professionals at all levels, from corporate executives to franchise workers. The Federal Trade Commission estimates that banning noncompete agreements nationally would increase workers’ earnings by up to $488 billion over the next decade.

In 2023, both houses of the New York legislature passed a predecessor to this bill, but it was ultimately vetoed by Gov. Kathy Hochul.

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The American Economic Liberties Project works to ensure America’s system of commerce is structured to advance, rather than undermine, economic liberty, fair commerce, and a secure, inclusive democracy. Economic Liberties believes true economic liberty means entrepreneurs and businesses large and small succeed on the merits of their ideas and hard work; commerce empowers consumers, workers, farmers, and engineers instead of subjecting them to discrimination and abuse from financiers and monopolists; foreign trade arrangements support domestic security and democracy; and wealth is broadly distributed to support equitable political power.