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13 hours ago - Economy & Business


NEW YORK COULD BECOME THE LATEST STATE TO BAN NONCOMPETES

 * Emily Peck, author of Axios Markets

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Illustration: Aïda Amer/Axios

New York could become the latest state in the U.S. to ban noncompete agreements.
A bill passed the state's Assembly earlier this week and is now on the
governor's desk.

Why it matters: There's new energy around banning or limiting the use of these
often-criticized agreements, which prevent people from working for a new
employer for a period of time after they leave a job.

 * That new buzz is thanks in part to the Federal Trade Commission's proposal
   earlier this year to ban them nationally.

State of play: Minnesota passed a law banning noncompetes last year; it will go
into effect July 1.

 * Washington, D.C.'s ban went into effect this year, making the agreements
   unenforceable for those earning less than $150,000 a year, or medical
   specialists who make under $250,000.
 * Nine other states, including Colorado, Illinois, and Oregon have laws — all
   passed since 2019 — limiting noncompete agreements to higher earners.
 * Three states have had noncompete bans in place for more than a century:
   California (since 1872), North Dakota (1865) and Oklahoma (1890).

There's a feedback loop happening between the states and the federal government,
"acknowledging that noncompetes in any way, shape or form are a real problem,"
said Pat Garofalo, director of state and local policy at the progressive
American Economic Liberties Project.

Yes, but: It's unclear whether New York's Democratic governor Kathy Hochul will
sign the bill into law — her office didn't respond to emailed questions.

 * "We hope the governor would veto," said Patrick Bailey Director of
   Communications at the Business Council of New York, which represents about
   3,200 businesses in the state.
 * Employers think the law would make it more difficult to retain talent, he
   said.

Catch up fast: Banning these agreements has been on the Democratic agenda since
President Obama first urged the states to act in 2016.

 * The move to limit noncompetes, especially for entry-level or low-wage
   workers, comes after years of stories about how they were prevented from
   taking new jobs.


 * The FTC estimates that about one in five workers — 30 million people — are
   bound by these kinds of agreements.

One example: When a chiropractor in New York was fired from her job last year,
her boss told her they would still enforce her noncompete — prohibiting her from
working within a 25-mile radius of her employer for two years, according to
testimony she gave on New York's legislation.

 * "So now, I am jobless, in a lot of student loan debt and not allowed to work
   within a 25-mile radius of my home," she said in prepared testimony.

What we're watching: The future of the proposed FTC ban is murky. Experts have
told Axios that if enacted, it could get overturned in court.

 * But state laws — in place for hundreds of years without controversy — don't
   face the same kind of legal hurdles.

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GO DEEPER

 * Sareen Habeshian

3 hours ago - Politics & Policy


VA DENIED BLACK VETERANS HEALTH BENEFITS MORE OFTEN THAN WHITE VETS, DATA SHOWS

VA denied Black veterans health benefits more often than white vets, data shows

The Department of Veterans Affairs building is seen in Washington, D.C., in
2019. Photo: Alastair Pike/AFP via Getty Images

The Department of Veterans Affairs was more likely to deny disability health
benefits to Black veterans than their white counterparts, according to a new
government data analysis.

By the numbers: In fiscal year 2023, 84.8% of Black veterans who applied for
physical or mental health benefits were granted assistance, compared to 89.4% of
white veterans, the VA found.

Go deeper (1 min. read)
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 * Jacob Knutson

4 hours ago - Technology


HOW AI IS HELPING SCAMMERS TARGET VICTIMS IN "SEXTORTION" SCHEMES

How AI is helping scammers target victims in "sextortion" schemes

Illustration: Aïda Amer/Axios

Rapidly advancing AI technologies are making it easier for scammers to extort
victims, including children, by doctoring innocent photos into fake pornographic
content, experts and police say.

Why it matters: The warnings coincide with a general "explosion" of "sextortion"
schemes targeting children and teens that have been linked more than a dozen
suicides, according to the FBI.

Go deeper (1 min. read)
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 * Juliegrace Brufke

4 hours ago - Politics & Policy


HOUSE FREEDOM CAUCUS WEIGHS KICKING OUT MARJORIE TAYLOR GREENE

House Freedom Caucus weighs kicking out Marjorie Taylor Greene

(Photo by Kevin Dietsch/Getty Images)

Members of the House Freedom Caucus discussed potentially ousting Rep. Marjorie
Taylor Greene (R-Ga.) from the conservative group during a closed-door meeting
on Friday morning, three sources familiar with the conversation confirmed to
Axios.

Why it matters: The discussion comes in the wake of Greene taking aim at Rep.
Lauren Boebert (R-Co.) on the House floor, where Greene called the Colorado
Republican a “nasty little b***h” after Boebert introduced competing impeachment
resolutions.

Go deeper (1 min. read)
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