Having a non-compete clause in your business is a great way to protect your interests and investments. However, non-compete clauses are regulated by the state, so understanding the local regulations is essential before getting started. This article will help you get started by giving an overview of non-compete clauses and discussing the local regulations in New York.

What is a Non-Compete Clause?

A non-compete clause is a legal contract that prohibits a person from engaging in activities that interfere with a business you have a stake in. Essentially, it ensures that your business’s employees or contractors won’t be able to use the knowledge, information, or contacts gained while working for you to benefit another business you’re in competition with.

Non-compete clauses are often included in employment contracts and can be used to protect an employer’s sensitive information, customer lists, proprietary software, trade secrets, and other assets. They also prevent former employees from using that knowledge to benefit their own business if they decide to leave the company. Non-compete clauses are a great way to protect your business’s investments and interests and ensure that your employees and contractors remain loyal to your business.

Regulations in New York

Non-compete clauses are heavily regulated by the state. In New York, non-compete clauses are governed by the New York General Business Law 155-b and Section 8-107 of the NYS Labor Law.

The New York General Business Law 155-b says that non-compete clauses in employment contracts will be enforced if they are reasonable. They must be no more restrictive than necessary to protect the legitimate interest of the business, and must be tailored to avoid the hardship to the employee caused by common law covenants. The NYS Labor Law Section 8-107 also requires that any non-compete clause must be reasonable in time and scope to be enforced.

An experienced legal counsel is essential in ensuring that the non-compete clause you include in your business’s contracts is compliant with the regulations. It’s also important that you seek counsel that understand the local regulations in order to ensure that your non-compete clause is valid.

Key point

Non-compete clauses are an important part of any employment contract as they provide a legal protection for the legitimate interests of a business. However, to ensure that the clause is valid, it’s important to understand and comply with the state regulations. As New York has unique regulations around non-compete clauses, having a lawyer experienced in local laws is key to protecting your business’s investments.


Non-Compete Clause,

Local Regulation,

New York.