New York state is poised to enact a radical change to its employment laws: the elimination of all noncompetition agreements. A sweeping bill passed by the state Legislature in June 2023 now awaits signature from Governor Kathy Hochul, who is considering the measure. Although well-intentioned, this legislation is deeply misguided. The governor would be wise to reject it.

What’s the purpose of noncompetes? Noncompetes prevent unfair competition. An employee who signs such an agreement can’t learn her employer’s confidential procedures and strategic weaknesses, and then walk across the street to work for a competitor. When used properly, noncompetes are a healthy restraint on sneaky business tactics.