A New York non-compete agreement is a document that constrains on an employee after the termination of their employment prohibiting them from working for a company or starting a business in competition with their former employer. This type of agreement is most useful for businesses in highly competitive or creative industries, and in situations where an employee will have access to confidential and proprietary information. Furthermore, the employer will likely want to prohibit the employee’s ability to solicit their customers, clients, contractors, and other employees after the employee has left their position. The State of New York does not have specific laws defining what can and cannot be included in a non-compete agreement. Instead, the enforceability of a non-compete agreement is reviewed in a case-by-case manner. A court of law will enforce such an agreement only if the following three factors apply:
- the agreement is no more restricting than is required for the protection of the legitimate interest of the employer;
- the agreement does not impose undue hardship on the employee; and
- the agreement is not injurious to the public.
Laws – None.
Non-Compete Limit – Courts will compare geographic scope to length of time when considering the enforceability of a non-compete, but no exact time-limit is defined.
Non-Solicitation Limit – None.