4 ms·

Are they enforceable in New York? I am finding conflicting information in Google.

by ccrush 8y ago

zekevermillion 8y ago
In general, restrictive covenants are enforceable in New York to the extent that they protect the employer's "legitimate business interests". The leading case in NY last time I checked, a few years ago, was BDO Seidman, if you want to look that up on Google scholar. Usually if there's a noncompete case, there is also a trade secret misappropriation claim at the same time. So unfortunately there is little chance that a complaint based on overly broad noncompete would just be dismissed as a matter of law in NY, regardless of how stupid the thing is.
- KSS42 8y ago
  Here's another case. International Business Machines Corp. v. Papermaster https://en.wikipedia.org/wiki/International_Business_Machines_Corp._v._Papermaster https://en.wikipedia.org/wiki/International_Business_Machine...
  - zekevermillion 8y ago
    Oh, that's a good one!
chadash 8y ago
The default in California is not to enforce non-competes, but there are exceptions [1]. The default in other states is to enforce them, but there are exceptions [2]. [1] For example, if I sell you my business and agree to sign a non-compete that I won't then turn around immediately and compete with you, these non-compete agreements will generally be upheld. [2] In most states, courts have latitude to decide on what counts as "unreasonable". For example, a non-compete for a janitor at a Fortune 500 company probably won't be upheld. An executive's non-compete at the same company probably will be. But there's a lot of gray area in-between.
tathougies 8y ago
In general, if they prevent you from working in your profession, they are unenforceable in almost every state. This is for the simple reason that it is against the public's interest to have you on unemployment, and the state cares more about its coffers than business interests. This is as an employee of course.

Are they enforceable in New York? I am finding conflicting information in Google.

by ccrush 8y ago

Are they enforceable in New York? I am finding conflicting information in Google.

In general, restrictive covenants are enforceable in New York to the extent that they protect the employer's "legitimate business interests". The leading case in NY last time I checked, a few years ago, was BDO Seidman, if you want to look that up on Google scholar. Usually if there's a noncompete case, there is also a trade secret misappropriation claim at the same time. So unfortunately there is little chance that a complaint based on overly broad noncompete would just be dismissed as a matter of law in NY, regardless of how stupid the thing is.

KSS42 8y ago
Here's another case. International Business Machines Corp. v. Papermaster https://en.wikipedia.org/wiki/International_Business_Machines_Corp._v._Papermaster https://en.wikipedia.org/wiki/International_Business_Machine...
- zekevermillion 8y ago
  Oh, that's a good one!

chadash 8y ago

The default in California is not to enforce non-competes, but there are exceptions [1]. The default in other states is to enforce them, but there are exceptions [2]. [1] For example, if I sell you my business and agree to sign a non-compete that I won't then turn around immediately and compete with you, these non-compete agreements will generally be upheld. [2] In most states, courts have latitude to decide on what counts as "unreasonable". For example, a non-compete for a janitor at a Fortune 500 company probably won't be upheld. An executive's non-compete at the same company probably will be. But there's a lot of gray area in-between.

tathougies 8y ago

In general, if they prevent you from working in your profession, they are unenforceable in almost every state. This is for the simple reason that it is against the public's interest to have you on unemployment, and the state cares more about its coffers than business interests. This is as an employee of course.