Non Compete Agreements in New York
Is your employer asking you to sign a contract that states you cannot work for a direct competitor after the termination of your employment? While it is understandable that companies would not want their former employees to divulge trade secrets, some employers go too far and unlawfully eliminate their former employees' chances of getting a new job in a reasonable amount of time.
According to The Law, Do I Have to Agree to This Non Compete Agreement?
The state of New York—like the majority of U.S. states—recognizes and enforces various forms of non compete agreements. At the same time, jurisdictions are also aware that there are businesses that abuse non compete covenants to prevent employees from working elsewhere at all.
Though the legal limits of non compete clauses vary per jurisdiction, most courts are in agreement that the following conditions have to be present for a non compete clause to be reasonable:
- The restrictions are no greater than necessary for the protection of the employer's legitimate business interest
- The restrictions do not impose undue hardship on the employee
- The restrictions are not injurious to the public
Employers should carefully draft non compete agreements to ensure that they comply with local and federal employment laws. Unless an employer can prove, by clear and convincing evidence, that the restrictions are necessary to protect his or her legitimate business interest, the employer cannot impose undue hardship on the employee, and cannot injure the public. Employers are cautioned to consider which employees sign such agreements. In almost every case involving non compete agreements, one finds the phrase "Covenants not to compete are disfavored by the law," For this reason, employers should scrutinize existing agreements and prudently use them in the right situation to make sure they will hold up in court.
As an employee, yourself the following questions before you sign anything:
- Does the clause have geographic or time limits?
- Was I entrusted with confidential information or trade secrets?
- Does the non compete clause seek to restrain ordinary rather than unfair competition?
- Does the clause prevent me from pre-existing skills—or just the skills I developed when I was with my current employer?
- In what ways is the non compete clause detrimental to me?
- Does the clause restrict my sole means of support?
- Is the restricted employment merely incidental to the main employment?
Non Compete Lawyers
If you think that a non compete agreement is unlawfully limiting your opportunities for a new job, don't sign that contract — not before you let one of our non compete lawyers take a look at it first.
Here at Levine & Blit, PLLC, we have the experience in non compete law and knowledge to know what's best for you. Call (212) 967-3000.