Are Non Compete Agreements Enforceable In New York State

Ottinger Employment Lawyers

New York Courts Take a Stance Against Non-Compete Provisions

Major Shift in Law on Non-Compete Agreements in New York

Senate Approves Bills to Limit Non-Compete Usage

New York courts have historically held a negative view towards non-compete provisions, and recent developments in state law have further solidified this position. On June 7, 2023, the New York State Senate approved two significant bills aimed at curtailing the use of non-compete agreements.

The new legislation, known as the Non-Compete Agreement Limitation Act, seeks to protect workers from the potential harm caused by restrictive employment contracts. The Act imposes strict limits on the enforceability of non-compete provisions and establishes criteria for courts to consider when evaluating their validity.

Specifically, the Act requires that non-compete agreements be in writing, supported by adequate consideration, and reasonably limited in scope and duration. Courts will now have the authority to modify or invalidate non-compete provisions that are deemed to be overly broad or that violate public policy.

The passage of these bills represents a significant shift in New York law on non-compete agreements. It is a clear indication that the state legislature recognizes the potential harm that such provisions can impose on workers and is committed to protecting their rights.

Forbes