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 or not a judge will conclude that the covenant is enforceable can be difficult to know beforehand. 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 Tonawanda that are unreasonably large.
Non-compete clauses are also limited in that they can only apply to competitors who are reasonably related to the industry of the employer. 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?
You may want to hire a Tonawanda, New York lawyer to review the covenant before signing any agreements that may limit or restrict your rights. The lawyer will then be able to negotiate any modifications to the contract as needed, or they can even draft a new one should it be required by one or both parties. When it comes to suing an employee for breach of a non-compete clause, an attorney can give valuable advice. They will also be able to counsel employees who need advice for a covenant they have signed.
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