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?

It is difficult to foresee whether a judge will enforce a given non-compete agreement. 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. Those provisions that courts have seen to be unreasonable include those that last for an prolonged period of time or cover geographic areas around Haverstraw that are unreasonably 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, there must be a legitimate business interest which motivates the employer's mandating a covenant not to compete.

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 Haverstraw, New York lawyer to review any documents. 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. Attorneys can provide valuable counseling to employers who are considering suing an employer who breached a covenant not to compete. They can also assist employees who have signed an agreement limiting their employment options.