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Labor & Employment

Non-Compete Agreement

A non-compete agreement often arrives with an offer letter or a promotion, on a deadline, and with the suggestion that everyone signs it. That is the moment when its terms are easiest to change.

Reviewed

01 GUIDE

Non-Compete Agreement: what usually happens

The terms that decide its reach

The parts that tend to matter most are what counts as competing, how long the restriction lasts, and what geographic area or customer base it covers. Many agreements also carry clauses that work like a non-compete without the name, such as bans on soliciting clients or coworkers, and broad confidentiality terms. A choice of law clause can pull the agreement under another state's rules, and a forum clause can decide where any dispute is heard. Some agreements pay during the restricted period, sometimes called garden leave, and others pay nothing. Read the definitions section closely, because a narrow restriction can become a broad one through a single defined term.

Where New York stands

New York has long relied on court decisions rather than a general statute to decide these questions, and lawmakers have been actively considering limits, so the current state of the law is worth confirming at the time you sign. Courts here have generally enforced a restriction only to the extent it is reasonable and protects a legitimate interest, such as trade secrets, confidential information, or relationships the employer paid to develop, rather than simply avoiding competition. Courts sometimes trim an overbroad clause instead of discarding it. A federal rule that would have banned most non-competes did not take effect. Rules differ sharply between states, and a few, California among them, refuse to enforce most of them, so where you live and work matters.

Negotiating before signing

Employees can often ask for a shorter or narrower restriction, a carve-out for prior clients, payment during the restricted period, or a release from the restriction if the employer ends the job without cause. Employers drafting an agreement are usually better served by a restriction they can defend than by the broadest one on offer, and by matching each restriction to an interest they can actually show. Bring the agreement, the offer letter, and any related equity or bonus documents, since restrictions are sometimes tucked into those. We review the language, explain what it would likely reach, and help you decide what to raise.

02 ATTORNEYS

Who you would be working with

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03 CASE RESULTS

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05 HOW WE WORK

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Attorney Advertising. This page is general information about non-compete agreement and is not legal advice. Reading it does not create an attorney-client relationship. Outcomes depend on the facts of each matter, and prior results do not guarantee a similar outcome. Laws differ by state and change over time.