The Current State of Noncompetes in New York

In an article for the New York Law Journal, labor and employment partner Joseph O’Keefe and associate Erik Mosvick broke down the current state of noncompete law in New York and how recent regulatory, legislative and judicial developments have affected employee mobility agreements in the state.

The authors note that increased scrutiny of noncompetes, particularly from New York legislators and the Federal Trade Commission have drawn the attention of commentators and employers over the past several years. While the overall legal standard in New York remains unchanged, they said that recent decisions suggest an increased sense of hostility toward noncompete agreements and less tolerance for overbroad language.

The authors also discuss how employers should closely consider their use of restrictive covenant agreements, paying particular mind to enforceability and different types of noncompete agreements.

“In short, employers should take the opportunity to step back and critically analyze their use of noncompete agreements and other restrictive covenants that could limit an employee's post-employment opportunities and activities. Litigation of noncompete disputes is expensive, time-consuming, and unpredictable. Employers should work with their legal counsel to define their fundamental protectable business interests and how to best set policies and structure enforceable agreements to protect those interests,” they included.