Are Non Compete Agreements Enforceable In Ny

These agreements were once limited to high-level executives who had access to the company`s business secrets or who developed unique skills during their business activities. “As long as a person does not have skills or access to very unique trade secrets, non-competition prohibitions have no place in a worker`s employment contract. Unscrupulous non-competition bans not only threaten workers who wish to change jobs, but they also serve as a disguised threat… Workers like Law360 reporters should be able to change jobs and advance their careers without fear of being sued by their former employer.¬†Each state has its own rules for the application of non-competition clauses and agreements. For a non-compete clause to be implemented in New York, it must be reasonable and overcome the presumption of inapplicability. The courts now oppose non-competition bans against workers based on overly broad agreements. An Illinois judge recently dismissed a competitive action against a former employee. The employee signed a non-compete agreement that prevented her from contacting competitors or being “in any way” in contact with a competitor. The judge refused to apply the non-competition agreement because it was too broad. Medix Staffing Solutions, Inc. vs. Dumbrauf (2018). In 2017, Stefanie Russell-Kraft worked as a legal reporter for Law360.

She received a job offer from Reuters, a competitor to Law360. Russell-Kraft had signed a non-compete agreement and Law360 sent a letter to Reuters. The letter claimed that Russell-Kraft had been banned from working for Reuters under its non-compete agreement. Reuters, like many companies, decided to turn Russell`s strength to avoid possible conflict with Law360. The courts will therefore apply non-competition prohibitions, but only to the extent necessary to protect the legitimate interests of employers. Unscrupulous non-competition bans not only threaten workers who wish to change jobs, but they also serve as a disguised threat… The courts are very reluctant to impose a non-competition clause so broad that a worker would not be able to earn a living.