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Saturday, May 16, 2026

New York State Employment Law Update (Part 1) | Goldberg Segalla - JDSupra - JD Supra

Key Takeaways:

  • Hochul vetoes non-compete bill

  • New York enacts Freelance Isn’t Free Act

  • New York enacts the Clean Slate Act

New York remains one of the busiest states from a business perspective, with ever-changing employment laws that affect businesses. This is the first part of a four-part series providing recent New York employment law updates.

Non-Compete Ban Halted In New York

On December 22, 2023, Gov. Hochul vetoed S3100A/A1278, a law passed by the New York State legislature in June 2023. The bill would have created a section in the New York Labor Law, and defined “non-compete agreement” and “covered employees,” prohibited the imposition of a non-compete on a covered employee, voided any non-compete entered into after the effective date of the bill, and provided a mechanism for aggrieved employees to enforce the bill.

While Gov. Hochul voiced support for a prohibition of non-competes on middle-class to low-wage earners, she did not agree with the one-size-fits-all approach the bill employed.

As a result of the veto, non-compete agreements in New York continue to be governed by the landmark Court of Appeals case BDO Seidman v. Hirshberg, 93 N.Y.2d 382 (1999). In BDO Seidman, the Court of Appeals articulated the “prevailing standard of reasonableness” applied by New York courts in determining the validity of employee agreements not to compete. BDO Seidman held that “a restrictive covenant will only be subject to specific enforcement to the extent that it is...



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