EDITORIAL

Governor should sign ban on non-compete agreements

 
 They’re called “non-compete” agreements, which is a nice way to say they restrict where people can work.
 
 Non-compete agreements keep employees from working at competitors and from bringing their skills and knowledge with them. And they allow employers to keep salaries artificially low because they know their workers can’t go to a competitor in search of higher wages. No wonder businesses are fighting to keep such agreements legal.
 
 Eliminating these agreements would benefit workers by giving them more freedom to change jobs in their field, improve their station in life, receive better working conditions and job satisfaction, make more money and be better able to support themselves and their families.
 
 It’s time to end these agreements and give people more control and choice to conduct their lives as they see fit. A bill awaiting Gov. Kathy Hochul’s signature would do just that.
 
 The bill (A1278B/S3100A) — which passed with bipartisan support in June — would prohibit companies from imposing non-compete agreements on their workers, void existing non-compete agreements and give employees the right to bring civil action against employers who enforce these agreements.
 
 The idea that a restaurant worker can’t quit and go work at another restaurant in their town, or the fact that a doctor or nurse could not leave one hospital and serve patients at another hospital in the area, is not only harmful to the workers, but to the people who benefit from their experience and skills.
 
 We understand the nature of the opposition coming from some in the business sector, who are concerned about their best and brightest employees taking the training, experience and knowledge about their companies and benefiting a competitor.
 
 First, that’s the nature of business. Workers are always working their way up the ladder with experience and skills obtained from their previous employer.
 
 Second, the legislation passed in June specifically does not affect the ability of companies to enter into employment contracts or other agreements that protect their legitimate business interests.
 
 The Senate sponsor of the bill, Buffalo-area Sen. Sean Ryan, told WTEN last week that non-disclosure agreements with employees — which are legally binding — would still give companies the ability to protect trade secrets, proprietary information, lists of clients and other information vital to their ability to remain competitive, as the state bill does not prevent or limit those.
 
 Businesses might also be concerned about proposed new rules under consideration by the Federal Trade Commission that would impose similar restrictions on non-compete agreements. But the FTC is not expected to consider the rule change until sometime next year.
 
 If and until the federal rule is passed, New York should protect its workers and worker freedom by enacting its own ban on non-compete agreements.
 
 Gov. Hochul should sign the bill.