Personally speaking, this only seems to be a very marginal improvement over the current situation if you consider the impact of legislation in a vacuum and magically wish away any possible unintended consequences.
Does your analysis consider that at least some employers will not want to deal with employees affected by this? You might wish that this wasn't a thing, but it is.
Maybe this legislation isn't as questionable in good economic times where companies are rapidly hiring as many people as they can wherever they can, but it seems particularly self-destructive in a market where employers have the leverage to look anywhere.
What are you going to tell those increasingly desperate New Yorkers who start getting sad feedback like the following? "Thank you for your application to our company. Unfortunately, this role is not currently eligible for New York State residents. Have a nice day."