New York Non-Compete Attorneys

If you’ve been asked to sign a non-compete agreement, want to get out of one, or need help with a violation claim, a New York non-compete attorney can help protect your rights under the recently updated laws. 

As employment law attorneys, we’ve seen non-compete agreements become more common, with an estimated 40% of American workers affected. Evidence shows that these restrictive covenants often reduce wages and create unfair competition in the job market.

Regulators are responding. After New York prosecuted companies for misusing these agreements in 2016, the Federal Trade Commission proposed a national ban in January 2023. New York courts now look more closely at agreements that prevent a former employee from working in their field for an unreasonable time period.

Let’s explore what non-compete agreements mean for your employment relationship, how the law protects workers, and when to seek legal advice to challenge unfair restrictions.

What Are Non-Compete Agreements?

A non-compete agreement is a legally binding contract between an employer and employee that restricts the employee’s ability to work for competitors or start a competing business after their employment ends. These agreements protect an employer’s legitimate business interests, trade secrets, and competitive advantage in the marketplace.

These are the key elements of non-compete agreements:

1. Time restrictions: Specify how long the agreement remains in effect after employment ends.
2. Geographic scope and limitations: Define specific regions where the employee cannot work.
3. Industry scope: Outline which types of businesses or roles are considered competitive.

For example, a medical device sales representative in Manhattan might be required to sign an agreement that prevents them from working for competing medical device companies within the New York metropolitan area for 12 months after leaving their position.

The scope and duration of non-compete restrictions vary significantly by:

• Industry type
• Employee’s role and seniority
• Access to confidential information
• Market conditions

Standard agreements typically restrict employment for six months to one year, but certain industries may impose longer terms. Companies where research and development are crucial, such as technology and pharmaceuticals, might impose multi-year restrictions to protect their intellectual property.

Non-compete agreements were originally designed to protect businesses’ interests, trade secrets, resources, and experts. However, the way non-compete agreements are used has changed over time. They still protect the business, but are often expanded to effectively penalize workers with overly burdensome clauses, durations, and even requirements. 

Many employers now impose these restrictions beyond their intended purpose, including:

• Lower-level employees without access to sensitive information
• Workers in non-technical positions
• Entry-level and minimum-wage staff

Breaking a non-compete agreement can have serious ramifications. If you violate any of the terms, including by working for a competitor, your former employer may:

• File a lawsuit against you
• Seek court intervention to stop your new employment
• Demand monetary damages
• Pursue legal fees and other penalties

Before signing or challenging a non-compete agreement in New York, it’s crucial to understand your rights and obligations under state law.

What Does New York Law Say About Non-Compete Agreements?

Many non-compete agreements in New York are not legally valid. The state and attorney general have become more protective of workers’ rights, making it harder for employers to enforce unfair restrictions.

A non-compete must meet four basic requirements to be valid in New York.

1. Protect legitimate business interests: The agreement must protect real business needs such as trade secrets or confidential information. It can’t be used just to prevent normal competition.
2. Be fair to the employee: The restrictions can’t make it too hard for employees to find work. They must still be able to use their skills to make a living.
3. Have reasonable limits: Time and location restrictions must make sense for the specific job and industry. For example, a one-year restriction within New York City (NYC) might be reasonable, but a five-year nationwide ban is probably excessive.
4. Not harm the public: The agreement can’t block important services. A classic example is that hospitals can’t stop doctors from providing necessary care in their communities.

Since 2016, New York has taken a stronger stance against unfair non-compete agreements. The state is particularly opposed to restrictions on low-wage workers, entry-level employees, and staff who don’t have access to sensitive company information.

If your non-compete agreement doesn’t meet all four requirements, a New York court likely won’t enforce it. While many employers still ask workers to sign these agreements, that doesn’t always mean they’re legally binding.

This shift in New York law gives workers more freedom to change jobs and forces companies to set more reasonable limits. However, every case is different, so it’s important to understand how these rules apply to your situation.

Is A National Ban On Non-Compete Agreements Possible?

In February 2023, the Workforce Mobility Act (WMA) was reintroduced in the U.S. Senate after it failed to pass in 2019. This bipartisan bill, supported by Senators Chris Murphy (D-Conn.) and Todd Young (R-Ind.), proposes a near-complete federal ban on employee non-compete agreements.

WMA would allow non-compete agreements only in specific business situations:

• Sale of a business
• Dissolution of a partnership
• Buyout of partnership interests
• Senior executive severance agreement during business sales (limited to 12 months with matching severance pay)

The bill preserves certain protections for businesses while focusing on worker mobility:

• Non-disclosure agreements are still permitted
• Trade secret protections stay in place
• Non-solicitation agreements may be allowed (if they don’t severely limit job mobility)

A federal ban would create several key changes:

1. Establish uniform standards across all states
2. Force companies to find alternative ways to protect their interests
3. Remove barriers to worker mobility and wage growth
4. Eliminate state-by-state differences in enforcement

The Federal Trade Commission (FTC) supports a national ban, giving new momentum to these efforts. Growing awareness of how non-compete agreements harm workers and the economy also increases the likelihood of future regulation.

Schedule your non-compete consultation today.

How New York Non-Compete Attorneys Can Help Void a Non-Compete Agreement

New York doesn’t completely ban non-compete agreements, but it does make them harder to enforce. If you’re stuck in a non-compete you want to challenge, an experienced employment lawyer can help.

Here’s how an attorney can find ways to void or modify a non-compete agreement:

• No legitimate business reason: Employers must prove that a non-compete agreement is necessary to protect real business interests. In most cases, the only legitimate reason for enforcement of a non-compete clause is a trade secret. Very few people have access to a company’s trade secrets, so many non-compete agreements are unenforceable.
• Unreasonable burden on you: New York law requires that non-compete agreements can’t make it too hard for you to earn a living. If the terms of the agreement prevent you from finding a new job that matches your skills, you might be able to void the agreement. But be aware—not making the same salary or getting the same exact job isn’t always an undue hardship.
• “Janitor Rule“: This rule voids non-compete agreements that are so broad that they’d prevent an employee from working for a competitor even in an unrelated role, like a janitor. If your agreement blocks you from any role at  a competitor, it may be too general to enforce. 
• Company breach: A company can’t enforce a contract it breached. Review your employment contract:
  • Have they paid you all bonuses, commissions, and wages as promised?
  • Have they failed to provide any agreed-upon benefits? 
  • Have they broken any employment laws? 

If your employer has breached any part of the employment agreement, then they can’t enforce the non-compete clause of the same agreement.

• Non-compete period is too long: If the non-compete period is over a year, it might be excessive. In some cases, courts will simply reduce the non-compete period. 
• Job change: If your role has significantly changed since you signed the non-compete agreement, it might not be enforceable. For example, if you were promoted or have different responsibilities, then the original agreement might not apply anymore.
• Overly broad geographic area: This argument applies if the non-compete covers a geographic area larger than the business serves. If a company only operates in Queens, it can’t prevent its employees from working in Manhattan.
• Public interest: If your job provides critical services (e.g., healthcare, environmental protection, etc.) and limiting your work would harm the public, the non-compete agreement may not be enforceable.

What to Expect During a Consultation with New York Non-Compete Attorneys?

When you meet with our experienced attorneys in New York State, we’ll help you understand your rights regarding restrictive covenants and non-compete agreements.

Here’s what to expect during your consultation:

1. Document review

• Bring your non-compete agreement
• Share any related employment contracts
• Provide communications about the restrictions
• Include details about your period of time with the employer

2. Situation assessment

• The scope of restrictions that prohibit your employment
• Geographic limitations
• Duration of the restrictive covenant
• Your role and access to confidential information

3. Legal strategy discussion

• Whether your agreement is likely enforceable under New York State law
• Recent changes in executive orders affecting such agreements
• Potential approaches to challenge or negotiate the agreement
• Your options moving forward

4. Action plan development

• Outline immediate next steps
• Discuss timeline expectations
• Review potential costs
• Explain the attorney-client relationship

Get in Contact With New York Non-Compete Agreement Attorneys Today

The team at Ottinger Employment Lawyers has been helping employees fight New York non-compete agreements since 1999. We’ll start by reviewing your agreement to identify potential challenges and opportunities. Then you’ll meet with an attorney in person or by phone to discuss your specific situation and outline all available options for moving forward.

Whether you need help understanding your non-compete agreement, negotiating better terms, or fighting the agreement in court, our law firm is ready to protect your career and future opportunities. Every case is unique, and we tailor our approach to meet your specific needs and goals.

Get in touch with Ottinger Employment Lawyers today for a confidential consultation about your non-compete agreement.

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