ALBANY, N.Y. (NEWS10)--From fast food workers to medical professionals, non-compete agreements impact a wide variety of industries. At a press conference on Tuesday, Senator Sean Ryan said most workers don’t realize they sign them.
"But even if they do realize it, there is no ability to negotiate. It’s either you sign it or you don’t get the job," said Ryan.
According to Ryan, these types of agreements make it hard for employees to leave their jobs for better opportunities elsewhere.
"So the worker is left with only bad decisions—you can pack up and move to a different geographic area, you can find a brand new job in a brand new field, or you can just stay with the current employer."
Advocates say this leads to wage suppression and prevents competition, creating higher costs for consumers. However, the Business Council argues this bill will ultimately hurt the economy if it gets signed into law.
"When you impose a piece of legislation like this, you make it very difficult for some industries to want to locate to New York, or continue to have employees in New York. One perfect example is companies that are heavy in research and development. The non-compete agreements protect them and protect the intellectual property that those companies have," said Paul Zuber, Executive Vice President of the Business Council of New York State.
This isn’t just a statewide topic, but a national one.
Back in January, President Biden said, "It’s one thing to say you can’t work inside a technology company on a special project that has scientific consequences and moved to another company without a non-compete agreement. It’s another thing to say you’re working for Subway and you can’t walk across the street to Jimmy John’s and get a $.20 raise."
Governor Hochul is reviewing the legislation.
