EIG Media Contact: Amelia Sandhovel | [email protected] 

Washington, DC – The Economic Innovation Group (EIG) led a coalition of 13 organizations in sending a letter to New York Governor Kathy Hochul today urging her to sign legislation to ban the use of noncompete agreements in the Empire State. 

“We write to respectfully urge you to sign S.3100A into law, which would help unleash the full potential of New York’s economy and workforce by banning the use of noncompete agreements. This legislation is among the most important pieces of pro-worker, pro-growth legislation in New York’s history and comes at a time when the state’s economy is in urgent need of a boost,” the signatories wrote

The New York State Legislature approved bill S.3100A on June 20, 2023, sending it to Governor Hochul for her signature. To date, the governor has taken no action and made no public comments about her intention to sign the bill into law. The letter notes that New York’s economy is facing massive outmigration, depressed levels of entrepreneurship, and more firm closures than openings. Nearly half of employers in New York subject employees to noncompete agreements. A growing body of empirical evidence suggests that restricting the use of noncompetes is a highly effective way to boost wages, job mobility, innovation, and new business formation.

New York’s legislation is part of a flurry of action at the state and federal levels to curb the use of noncompetes, including a proposed rule by the FTC, the bipartisan Workforce Mobility Act in Congress, and a recently enacted law in Minnesota that bans noncompetes statewide. In total, at least 20 states have enacted restrictions on noncompetes in recent years.

The letter was signed by a diverse coalition of employers, experts, and institutions, including the Center for American Entrepreneurship; Economic Innovation Group; Economic Policy Institute; Engine; Dr. Matt Marx, SC Johnson College of Business, Cornell University; Niskanen Center; Open Markets Institute; Orly Lobel, Warren Distinguished Professor of Law and Director, Center for Employment & Labor Policy at University of San Diego; Right to Start; R Street Institute; Steam Logistics; Veeva Systems Inc.; and Zachary Graves, Executive Director, Foundation for American Innovation.

Read the full letter here.

About the Economic Innovation Group (EIG)

The Economic Innovation Group (EIG) is a bipartisan public policy organization dedicated to forging a more dynamic and inclusive American economy. Headquartered in Washington, DC, EIG produces nationally-recognized research and works with policymakers to develop ideas that empower workers, entrepreneurs, and communities.


Economic Dynamism Non-Compete ReformPublic Policy

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