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 when leaving the company. Such agreements are also known by the term "non-compete clauses". Signing such an agreement can either be a condition for being employed, or the employee may receive additional compensation for doing so.
When are Covenants not to Compete Unenforceable?
It is difficult to discern whether a judge will enforce a given non-compete agreement. While the employer?s interests are significant, New York courts place great weight on an individual?s freedom to pursue the employment they want. Accordingly, courts have only upheld those agreements that they consider reasonable under the circumstances. A court will typically hold non-compete clauses to be unreasonable if they involve unusually long periods of time or if they cover a geographic region surrounding Fulton that is excessively large.
Limitations on non-compete clauses must also be restricted to cover only competitors who are related in a reasonable way to the employer's industry. Lastly, the covenant not to compete must have a valid business purpose which is behind the employer's motivation for requiring the agreement.
Do I Need an Attorney when Dealing with a Covenant not to Compete?
Since covenants could restrict your rights, you may wish to hire a Fulton, New York lawyer to review any provisions. They will be able to negotiate further changes to the covenant, and can draft an entirely new one that is acceptable to all parties if needed. A lawyer can also render useful advice for employers who are contemplating suing an employee for breach of covenant, or they can counsel employees who have signed such an agreement.