Restrictive Covenants

It is natural for employers to be concerned about former employees going into competition with them, especially if that employee had access to privileged information or interacted regularly with customers. Restrictive covenants in employment agreements limit an employee’s ability to compete with their former employer once the working relationship ends. Employment agreements typically include one or more of the following restrictive covenants:
● Noncompete: A former employee may not compete with their old employer either directly or by taking a job with a competitor
● Nondisclosure: Prevents a former employee from revealing information they obtained in the course of their employment.
● Nonsolicitation Prohibits a former employee from soliciting business from the former employer’s customers.
New York law has a complex take on restrictive covenants, making them enforceable, but only under certain conditions.