New York Governor Kathy Hochul Vetoes Senate Bill Aimed at Non-Compete Agreements

January 4, 2024

On December 22, 2023, New York Governor Kathy Hochul vetoed New York Senate Bill S3100A, which broadly prohibited employee non-compete agreements. The bill had previously been passed by both New York legislative houses in June 2023. The bill had been criticized by Governor Hochul for three main reasons: 1) the bill did not contain a salary cap, but instead broadly prohibited non-compete agreements at every level of employment, no matter the compensation level or bargaining power of the employee, 2) there was no carve-out for non-competes entered into in connection with the sale of a business, and 3) there was no exception for non-compete agreements or provisions providing for the forfeiture of compensation if an employee left to join a competitor or non-compete agreements providing for garden leave pay (pay during the non-competition period) in place of competition.

In November 2023, Governor Hochul had expressed concerns regarding the scope of the bill, stating that she supported limiting the use of non-compete agreements for low to middle income workers earning under $250,000. However, when the bill was sent to Governor Hochul for approval, the bill was not amended to address the above concerns or to put a salary cap on prohibited non-competes. Within the 10-day consideration period after the bill was sent to Governor Hochul, Governor Hochul and the New York legislature could not come to agreement with respect to a salary cap, which Governor Hochul had previously stated was vital to protect lower to middle income employees, while permitting businesses to retain highly compensated individuals. The legislature is expected to reintroduce non-compete legislation in 2024.

 

If your business has any questions on this topic or any other matters, please do not hesitate to contact the attorneys at The Royal Law Firm at 413-586-2288.


 



Brandon Calton admitted to the United States District Court of Connecticut

June 10, 2025
Brandon Calton is now admitted to the United States District Court, Connecticut! The Royal Law Firm is passionate about expanding our reach so that we can better serve our clients and their needs. Brandon is admitted in Massachusetts, the United States District Court of Massachusetts, and the United States District Court of Connecticut.

Federal Court Vacates EEOC’s “Abortion Accommodation Mandate” in PWFA

By Heather Child • June 9, 2025
On May 21, 2025, the U.S. District Court for the Western District of Louisiana struck down a provision in the Equal Employment Opportunity Commission’s (EEOC) final rule under the Pregnant Workers Fairness Act (PWFA), ruling that the agency exceeded its authority by requiring employers to accommodate elective abortions that are not medically necessary. Background Information: In June 2022, the U.S. Supreme Court issued a decision in Dobbs v. Jackson Women’s Health Organization, which overturned Roe v. Wade and eliminated the constitutional right to abortion. Congress passed the Pregnant Workers Fairness Act in December 2022, and it became effective in June 2023. The law requires employers with 15 or more employees to provide reasonable accommodation to qualified applicants or employees who have physical or mental conditions related to pregnancy, childbirth, or related medical conditions, unless doing so would cause significant difficulty or expense for the employer. In April 2024, The EEOC issued its final interpretation of the PWFA including abortion in the definition of “pregnancy, childbirth, or other related medical conditions” thereby requiring employers to provide accommodations related to abortion. In May 2024, the states of Mississippi and Louisiana sued the EEOC, arguing that the interpretation conflicted with the U.S. Supreme Court’s Dobbs decision and their respective state laws on abortion. In June 2024, Judge Joseph found that the EEOC exceeded its authority and issued a preliminary injunction postponing the effective date of the interpretation to provide accommodation for elective abortions until final judgment was entered in this matter. The final judgment was entered on May 21, 2025, that remanded the matter to the EEOC to revise the final rule and all related implementing regulations and guidances. Employer Takeaways: While employers are no longer (as of now) REQUIRED to provide accommodation for elective abortions, the remainder of the PWFA remains in full effect The decision to have or not have an abortion remains protected under Title VII The PWFA does not supersede state or local laws providing greater protection for pregnant workers. It is important to stay up to date on state regulations to ensure employers are complying with state laws. While it is still unclear how this ruling will impact employers nationwide, it is still important to continue to stay up to date on ever-changing legislation.  If your business has any questions on this topic or any other matters, please do not hesitate to contact the attorneys at The Royal Law Firm at 413-586-2288.