Economic Liberties Applauds New York Senate for Voting to Ban Noncompete Agreements
Washington, D.C. — The American Economic Liberties Project released the following statement after the New York State Senate voted to pass S3100A, a ban on noncompete agreements.
“The New York Senate took a hugely important step today by voting to ban noncompete agreements and void existing noncompete contracts,” said Pat Garofalo, Director of State and Local Policy at the American Economic Liberties Project. “These restrictive and coercive contracts, as shown by extensive research and the lived experience of workers, push down wages and degrade working conditions across the New York economy. They also harm small business formation, innovation, and ultimately raise prices for consumers. We applaud Sen. Sean Ryan for his leadership on this issue, and urge the New York Assembly to swiftly pass this vital legislation.”
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 nearly $300 billion per year.
Banning these agreements is also popular across the country. An Ipsos poll found that three in five Americans (61%), including two-thirds of those who are currently employed (66%), support the FTC’s proposed ban on non-competes. A Small Business Majority poll, conducted in April, found that 59% of small businesses support the FTC’s proposed rule, with only 14% opposing the ban.
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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.