Entry x · Employment
Read the non-compete first
Employment
Read the non-compete first.
- Issue
- Will my non-compete actually hold up?
- Rule
- It depends on the agreement's scope, the employee's role, and the law in effect, which in New York has been actively debated.
- Translation
- Ask before you sign, not after you quit.
Courts have generally asked whether a restriction protects a legitimate business interest, and whether its length and geographic reach are reasonable.
Non-solicitation and confidentiality clauses are often treated differently from a flat ban on working for a competitor, so read each clause on its own.
Proposals to limit non-competes have been moving through the New York legislature, so check the law in effect on the day you sign.