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Can I require employees to sign non-compete agreements in New York? What are the requirements?

Non-compete agreements in New York

In New York, non-compete agreements are generally enforceable if they are reasonable in time and geographic scope and necessary to protect an employer’s legitimate interests, such as trade secrets or confidential information [1.1]. However, there are certain requirements that must be met for a non-compete agreement to be enforceable:

  • The agreement must be supported by consideration, such as a job offer or a promotion [1.1].
  • The agreement must be narrowly tailored to protect the employer’s legitimate interests [1.1].
  • The agreement must not impose an undue hardship on the employee [1.1].
  • The agreement must not be against public policy [1.1].

Additionally, non-compete agreements are generally disfavored in New York and are strictly construed against the employer [1.1].

It is important to note that non-compete agreements are not enforceable for low-wage workers, defined as employees who earn less than $75,000 per year [1.2].

Conclusion

In summary, employers in New York can require employees to sign non-compete agreements if they are reasonable in time and geographic scope, necessary to protect the employer’s legitimate interests, and not against public policy. However, non-compete agreements are disfavored in New York and are strictly construed against the employer. It is also important to note that non-compete agreements are not enforceable for low-wage workers.

Source(s):
Jurisdiction

New York