Restrictive covenants in employment agreements can be very useful to companies on the leading edge of technology and business innovation. This document is a general checklist of factors employers should consider with respect to the use of such covenants.
New York Employee Restrictive Covenants
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How to fill out Employee Restrictive Covenants?
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FAQ
The New York State legislature has passed a bill banning almost all non-compete agreements for all workers, regardless of their salary level or job function.
An example of a restrictive covenant is a 'non-compete' clause. Such a clause prevents an individual from joining a competitor for a specific time. In addition, you will find 'non-dealing' clauses. These clauses say that an employee is not allowed to work with certain clients for a period of time.
Restrictive covenants may contain 4 different types of promises: (1) a promise not to compete with one's former employer; (2) a promise not to solicit or accept business from customers of the former employer; (3) a promise not to recruit or hire away employees of the former employer; and (4) the promise not to use or ...
In New York, a restrictive covenant is considered enforceable if the employer can show that: (1) the restriction is no greater than what is required to protect the employer's legitimate interest, (2) the restriction does not create an undue hardship for the employee, and (3) the restriction does not harm the public.
For example, restrictive covenants can prevent owners and tenants from making certain renovations, having pets, parking RVs in the driveway, or raising livestock.
Employers should understand that courts in New York may, commonly referred to as blue-penciling in the legal arena, delete, narrow, or modify an unreasonable or overbroad restriction to make it enforceable.
7 Types of Restrictive Covenants Non-Compete Covenant. ... Specific Non-Compete Covenant. ... Customer Non-Solicitation Covenant. ... Employee Non-Solicitation Covenant. ... Confidentiality or Non-Disclosure Covenant. ... Garden Leave. ... Assignment of Property Rights.
Are discriminatory restrictive covenants illegal? Generally, yes. Since the United States Supreme Court's 1948 decision in the case Shelley v. Kraemer, restrictive covenants based on race have been unenforceableA contract will not be enforced by a court of law..
