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Although non-competition agreements with employees are permitted in New York, courts generally enforce them in favor of employers only where the agreements are supported by adequate consideration and are deemed reasonable in scope.
Are non-competes legal? A non-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.
Typically, the only way to fight a non-compete agreement is to go to court. If you are an employee (or former employee) who signed such an agreement, this means you must violate the agreement and wait to be sued. It may be that your former employer has never sued another employee to enforce the non-compete agreement.
Here are five ways to beat a non-compete agreement.Prove your employer is in breach of contract.Prove there is no legitimate interest to enforce the non-compete agreement.Prove the agreement is not for a reasonable amount of time.Prove that the confidential information you had access to isn't special.More items...
You Can Void a Non-Compete by Proving Its Terms Go Too Far or Last Too Long. Whether a non-compete is unenforceable because it covers too large of a geographical area or it lasts too long can depend on many factors. Enforceability can depend on your industry, skills, location, etc.
Many states already ban the use of non-compete clauses; however, New York State does not. Currently, courts in New York State use a case-by-case analysis to determine the enforceability of a non-compete agreement. In New York, covenants not to compete are typically against public policy and tough to enforce.
Although non-competition agreements with employees are permitted in New York, courts generally enforce them in favor of employers only where the agreements are supported by adequate consideration and are deemed reasonable in scope.
Non-compete agreements are typically considered enforceable if they: Have reasonable time restrictions (generally less than one year) Are limited to a certain geographic area (specific cities or counties, rather than entire states)