New York lawmakers next week will hold a public hearing on the effects that non-compete agreements have on workers and the labor market in the state. 

The hearing, set for Tuesday, will be held by state Sen. Sean Ryan and state Sen. Jessica Ramos, and include experts on how non-compete agreements can shape the labor pool and how New Yorkers have been affected. 

“Most people think of non-compete agreements as a restriction reserved for executives with trade secrets, but they are actually very commonly used in a wide variety of industries," Ryan said. "They can be debilitating for workers who want to leave their job and they stifle competition, which means they are bad for consumers as well. I expect that this hearing will illuminate the many negative effects non-competes have had in New York state and demonstrate why we need to eliminate them.”

Ryan has proposed legislation that would invalidate existing non-compete deals and ban them going forward. 

The Business Council of New York, however, has been opposed to prior measures that have the similar goal in mind of eliminating non-compete agreements.  

"Because of the serious nature of these agreements, employers do not enter into these agreements lightly," the group wrote last year in a memo of opposition. "It is important to recognize, however, that from time to time these agreements are necessary."

Ending non-compete deals would place an undue burden on businesses, the group wrote. 

"Through the years, New York Courts have developed a 'reasonableness test' that has struck a balance between protecting legitimate employer interests with worker’s abilities to earn a living," the memo stated. "We believe this test is adequate in protecting the interests of both parties."

Lawmakers met with business leaders last year to discuss the proposal, and have tailored the new bill so it does not cover the protection of trade secrets, client information, or the solicitation of clients.

The hearing also comes as the Federal Trade Commission this year signaled rules changes to bar non-compete agreements. 

“Non-compete agreements have long been used to stifle a worker’s ability to advocate for themselves and leave exploitative workplaces," Ramos said.