Noncompete Agreements in New York: What You Need to Know
If you work in New York, you may have heard the term “noncompete agreement” before. A noncompete agreement is a contract that employees sign with their employers, agreeing not to work for a competitor or start a competing business for a certain period of time after leaving their current job. These agreements are becoming increasingly common in many industries, and it`s important for employees to understand what they`re signing up for.
What Are Noncompete Agreements?
Noncompete agreements are contracts between employers and employees that restrict employees from working for direct competitors or starting their own competing businesses for a certain period of time after leaving their current job. These agreements are intended to protect an employer`s confidential information, trade secrets, and client relationships. Noncompete agreements are typically included in an employment contract or as a standalone agreement.
Noncompete Agreements in New York
New York has some of the strictest noncompete laws in the country. In fact, noncompete agreements are not even enforceable in some industries in New York, including broadcasting, publishing, and performing arts. For other industries, noncompete agreements are only enforceable if they meet certain criteria.
Under New York law, noncompete agreements must be reasonable in terms of time and geographic scope. This means that the noncompete period cannot be too long, and the geographic scope must be limited to places where the employer actually does business. For example, a noncompete agreement for a retail worker cannot prevent them from working in the entire state of New York if the employer only has stores in a small area.
Additionally, the employee must receive some form of compensation in exchange for signing the noncompete agreement. This compensation can come in the form of a signing bonus, a raise, or some other benefit.
What Happens if You Violate a Noncompete Agreement?
If you violate a noncompete agreement, your former employer can seek damages, injunctive relief, or both. Damages could include lost profits or legal fees, while injunctive relief could prevent you from starting a competing business or working for a competitor.
It`s important to note that noncompete agreements are often difficult to enforce. Courts in New York will often only enforce them if the employer can show that they have a legitimate business interest in doing so.
Conclusion
Noncompete agreements are becoming more common in many industries, but it`s important for employees to understand what they`re signing up for. If you`re presented with a noncompete agreement, make sure to read it carefully and understand what you`re agreeing to. If you have any questions, you should consult with a lawyer who can provide you with guidance on your specific situation.