In New York, non-compete agreements (also called covenants not to compete) attempt to restrict an employee’s ability to work for a competitor or start a similar business after leaving a job. Employers often argue these agreements are necessary to protect trade secrets, confidential information, or client relationships.

For employees, however, non-competes can be harmful — limiting career opportunities, mobility, and earning power. Because New York law strongly disfavors restrictions on employment, courts will enforce non-compete agreements only if they protect a legitimate employer interest, are reasonable in time and geographic scope, and do not cause undue hardship to the employee or harm the public interest.

Disputes over non-compete agreements are common, and employers often overreach in drafting them. The attorneys of Risman & Risman, P.C. focus on protecting employees from unlawful restrictions that jeopardize their careers.

New York courts will enforce a non-compete only when it: protects a legitimate employer interest such as trade secrets, confidential information, or unique client goodwill; is reasonable in time and geographic scope; and does not cause undue hardship to the employee or harm the public interest.

Our attorneys challenge non-compete agreements by carefully examining whether they meet New York’s strict requirements for enforcement. We review the terms of the restriction, the nature of the employee’s work, and the employer’s stated justification.

If a non-compete is overly broad, we take action to have it narrowed or invalidated. In many cases, we negotiate solutions that allow employees to continue working in their chosen field without being trapped by an unenforceable agreement. Where necessary, we pursue litigation to ensure our clients can move forward in their careers.

New York has historically allowed limited enforcement of non-compete agreements, but the legal landscape is shifting. In 2023, the New York State Legislature passed a bill that would have banned nearly all non-compete agreements, but the Governor vetoed it. Similar legislation is expected to be reintroduced. At the federal level, the Federal Trade Commission (FTC) proposed a rule that would prohibit most non-compete agreements nationwide, though that rule was subsequently vacated.

These developments reflect a growing recognition that non-competes often unfairly burden employees. Until legislation is finalized, New York courts continue to apply strict scrutiny to these agreements, enforcing them only when narrowly tailored and truly necessary.