Work · Non-Compete Agreements
Are Non-Competes Enforceable in New York?
Whether an employee non-compete holds up in New York, any income threshold that voids one, the exceptions and carve-outs, and how the state compares after the 2024 to 2025 changes. Cited to the statute or the controlling law.
The rules and exceptions in New York
What makes a non-compete enforceable here, when it is void, and the carve-outs for particular workers or agreements.
Governor Hochul vetoed the blanket ban (S3100A) on December 22, 2023, objecting to covering high earners; sponsors wanted a $300,000 line and she favored roughly $250,000. No ban is currently law, but narrower bills are pending, so New York is the state most likely to change next. Verify the current session.
| The rule in this state | What it means |
|---|---|
| Common-law reasonableness test | New York has no non-compete statute. Enforceability turns on the BDO Seidman test: the restraint must be no greater than needed to protect a legitimate interest, must not unduly burden the employee, and must not harm the public. |
| Legitimate protectable interest required | The employer must be protecting something real, such as trade secrets, confidential information, or the employee’s unique or extraordinary services. A bare desire to block competition is not enough. |
| Reasonable time and geography | Courts weigh the duration and geographic scope of the covenant, and may partially enforce one that is overbroad rather than void it entirely. |
| Exceptions and carve-outs | What it means |
|---|---|
| Sale of a business | A non-compete tied to the sale of a business gets more latitude from the courts than an ordinary employee covenant. |
| Broadcast employees | A narrow existing statute limits non-competes for certain broadcast-industry employees. Confirm whether it applies to your role. |
| Pending legislation | Narrower bans targeting low and middle-income workers have been reintroduced after the 2023 veto. None is law yet, so watch for enactment. |
What you can do right now
Concrete, neutral steps if you signed or were asked to sign a non-compete in New York. This is legal information, not legal advice.
- Judge the covenant against the reasonableness test
A New York non-compete is enforceable only if it is no broader than needed to protect a legitimate interest and does not unduly burden you. An overbroad one may be partially enforced or struck.
- Do not assume New York banned non-competes
The 2023 ban was vetoed, so non-competes remain enforceable under common law. Ignore older coverage predicting a statewide ban.
- Identify what the employer is really protecting
If there is no trade secret, confidential information, or truly unique service at stake, the covenant is weaker. Note what legitimate interest, if any, the employer can point to.
- Talk to a New York employment lawyer before switching
Because enforceability is fact-specific and the law may change, a licensed New York employment attorney can assess your covenant. The State Bar can refer you to one.
Whether a non-compete can be enforced against you turns on its exact terms and your role. This resource can connect you with a licensed employment attorney who can review it.
→ New York State Bar — Lawyer ReferralThis is general legal information, not legal advice. A non-compete is different from an NDA or a non-solicitation clause, and enforceability turns on the specific facts, so confirm your situation with a licensed attorney.
What New York workers get wrong about non-competes
New York enforces employee non-competes, but only reasonable ones, and it does so through case law rather than a statute. Under the BDO Seidman test a covenant holds up only if it is no greater than needed to protect a legitimate interest, such as trade secrets or truly unique services, does not unduly burden the employee, and does not harm the public. The headline many people remember is wrong: a bill to ban non-competes passed the legislature but Governor Hochul vetoed it in December 2023, objecting to how it treated high earners. So nothing changed in law, and non-competes remain enforceable under the common-law standard. New York is, however, the state most likely to move next, because narrower bans aimed at lower and middle-income workers keep being reintroduced. Until one passes, judge any New York covenant by whether it is genuinely reasonable, and confirm the current legislative status if timing matters.
Common questions
Are non-compete agreements enforceable in New York?
Yes, if reasonable. New York has no non-compete statute; enforceability turns on the common-law BDO Seidman test, which requires the restraint be no greater than needed, not unduly burdensome, and not harmful to the public.
Did New York ban non-competes?
No. A blanket ban passed the legislature but Governor Hochul vetoed it on December 22, 2023. Non-competes remain enforceable under common law, though narrower bills have been reintroduced.
What makes a New York non-compete unenforceable?
If it is broader than needed to protect a legitimate interest, unduly burdens you, or harms the public, a court can refuse to enforce it or enforce only a narrowed version. A covenant protecting no real interest is weak.
Is there an income threshold for non-competes in New York?
Not currently. The vetoed bill and later proposals floated thresholds around $250,000 to $300,000, but none is law. Enforceability still turns on reasonableness, not on your salary.
Not legal advicePlainStatute provides plain-language summaries of public law for general information only. This is not legal advice. Statutes change; always confirm current requirements with the official source linked above before acting.