Generally speaking, in New York, a covenant not to compete means that the employee will agree not to work for any of their employer's competitors upon leaving the company. Such agreements are also known by the term "non-compete clauses". Signing such an agreement may either be a condition for being employed, or the employee may receive additional compensation for doing so.
When are Covenants not to Compete Unenforceable?
Whether a given judge will enforce a non-compete agreement is difficult to know in advance. While employer's interest are significant, the courts of New York also put a high level of importance on a person's ability to pursue their desired employment opportunities. Consequently, a court will generally only uphold non-compete clauses which under the circumstances are considered to be reasonable. A court will usually hold non-compete clauses to be unreasonable if they involve unusually long periods of time or if they cover a geographic region surrounding Bohemia that is excessively large.
Covenants not to compete are also required to deal only with competitors who are rationally related to the employer's line of industry. Lastly, the employer must have a valid business interest behind its motivation for mandating a covenant not to compete.
Do I Need an Attorney when Dealing with a Covenant not to Compete?
A Bohemia, New York lawyer can help you review the covenant before you sign any documents that might limit your rights. The lawyer can assist you in negotiating modifications or if needed, they can possibly draft a new agreement which will be acceptable to both parties. A lawyer can also render useful advice for employers who are considering suing an employee for breach of covenant, or they can counsel employees who have signed such an agreement.