compete is only allowed and enforceable to the extent it (1) is necessary to protect the employer's legitimate interests, (2) does not impose an undue hardship on the employee, (3) does not harm the public, and (4) is reasonable in time period and geographic scope.
A bill introduced in the New York State Senate on Feb. 10, 2025, would prohibit nearly all non-compete agreements arising in employment. Consistent with a national trend, non-competes for healthcare professionals would be banned.
Take a non-competitive job or role outside your current employer's specialty. Prove your employer breached the contract to invalidate the non-compete clause. Argue that the non-compete is overly restrictive or not enforceable. Negotiate or prove no legitimate business interests exist to uphold the agreement.
Although New York State lawmakers passed a non-compete ban in 2023, Gov. Hochul vetoed the bill primarily because she wanted to see exceptions allowing non-competes in connection with the sale of a business and for high-income earners that have more negotiating power.
Yes, the general rule in NY is that lawyers can't be held to a non-compete. But the Court of Appeals has acknowledged a rare exception to that rule.
Most New York courts will not enforce a non-compete agreement if the restriction is for over a year. For example, courts will generally find this time frame too long if the agreement attempts to restrict an employee for two years or more.
Although New York State lawmakers passed a non-compete ban in 2023, Gov. Hochul vetoed the bill primarily because she wanted to see exceptions allowing non-competes in connection with the sale of a business and for high-income earners that have more negotiating power.
How do employers enforce non-competes? An employer can file a lawsuit and ask a court to enforce the non-compete and require the employee to follow its terms. Some employers may send a letter to the employee or to the employee's new employer threatening to file a lawsuit to discourage employees from taking a new job.
Non-Competitive Activity at New Employer: One of the most straightforward ways to overcome a noncompete is by ensuring that your new role with a different employer is in a non-competitive capacity. If you're not engaging in activities that directly compete with your former employer's business, you may be in the clear.