New york non compete law enforces non competes only when they are reasonable: new York has no general non compete statute; the Court of Appeals’ BDO Seidman v.
Hirshberg (1999) test enforces a covenant only to the extent it is no greater than needed to protect a legitimate interest (trade secrets, confidential information, client relationships the employee gained through the job — not a general fear of competition), imposes no undue hardship on the worker and does not injure the public.
A statewide ban passed the legislature in 2023 and was vetoed on December 22, 2023; broadcast employees are protected by Labor Law 202-k. This guide gives the exact New York non compete law rule with the date we verified it, the threshold and carve-outs where they exist, what a court does with an overbroad term, and what to do if you signed one.
Rules verified against the statute on 2026-10-08; confirm the current rule with New York State Department of Labor, Division of Labor Standards or an attorney before you rely on it.
New York Non Compete Law at a Glance
| Status | Enforceable if reasonable (common law) |
| Income threshold | No earnings threshold |
| Statute | Common law: BDO Seidman v. Hirshberg, 93 N.Y.2d 382 (1999); N.Y. Labor Law 202-k (broadcast employees) |
| Notice / consideration | No statutory notice rule |
| Carve-outs | Broadcast employees other than management (Labor Law 202-k, since August 6, 2008 — non competes void, damages and fees for a violation); the 2023 S3100A ban… |
| Overbroad terms | partial enforcement — a court may sever the overbroad part and enforce the rest only when the employer acted in good faith and did not overreach (BDO Seidman) |
| In effect since | common law since BDO Seidman (1999); 202-k since 2008 |
In This New York Non Compete Law Guide:
Is a Non Compete Enforceable Under New York Non Compete Law?
New York has no general non compete statute; the Court of Appeals’ BDO Seidman v. Hirshberg (1999) test enforces a covenant only to the extent it is no greater than needed to protect a legitimate interest (trade secrets, confidential information, client relationships the employee gained through the job — not a general fear of competition), imposes no undue hardship on the worker and does not injure the public.
A statewide ban passed the legislature in 2023 and was vetoed on December 22, 2023; broadcast employees are protected by Labor Law 202-k. The statute is Common law: BDO Seidman v. Hirshberg, 93 N.Y.2d 382 (1999); N.Y. Labor Law 202-k (broadcast employees).
The carve-outs matter: broadcast employees other than management (Labor Law 202-k, since August 6, 2008 — non competes void, damages and fees for a violation); the 2023 S3100A ban was vetoed, so no income threshold exists.
New York Non Compete Law at a Glance
Rules verified against the statute on 2026-10-08; confirm the current rule with New York State Department of Labor, Division of Labor Standards or an attorney before you rely on it. The statute row is where to check it yourself.
| Status | Enforceable if reasonable (common law) |
| What the rule says | New York has no general non compete statute; the Court of Appeals’ BDO Seidman v. Hirshberg (1999) test enforces a covenant only to the extent it is no greater than needed to protect a legitimate interest (trade secrets, confidential information, client relationships the employee gained through the job — not a general fear of competition), imposes no undue hardship on the worker and does not injure the public. A statewide ban passed the legislature in 2023 and was vetoed on December 22, 2023; broadcast employees are protected by Labor Law 202-k. |
| Income threshold | No earnings threshold |
| Statute | Common law: BDO Seidman v. Hirshberg, 93 N.Y.2d 382 (1999); N.Y. Labor Law 202-k (broadcast employees) |
| Carve-outs | Broadcast employees other than management (Labor Law 202-k, since August 6, 2008 — non competes void, damages and fees for a violation); the 2023 S3100A ban was vetoed, so no income threshold exists |
| What a court does with an overbroad term | partial enforcement — a court may sever the overbroad part and enforce the rest only when the employer acted in good faith and did not overreach (BDO Seidman) |
| In effect since | common law since BDO Seidman (1999); 202-k since 2008 |
The Reasonableness Test Under New York Non Compete Law
New York has no general non-compete statute, so courts apply a common-law test of reasonableness. A restriction is generally enforced only if it is no broader than needed to protect a legitimate employer interest, such as trade secrets, confidential client information, or services that are truly unique. It also must not place an undue hardship on the worker or harm the public.
Courts look at how long it lasts, the area it covers, and the kind of work it blocks.
New York courts have often upheld restrictions of about six months to one year that are limited to the employer’s actual market or client base. Multi-year restrictions, broad statewide or nationwide bans, and bans on any work in an industry are often struck down, or the court cuts them back to a narrower scope.
With an overbroad term the court will partial enforcement — a court may sever the overbroad part and enforce the rest only when the employer acted in good faith and did not overreach (BDO Seidman).
New York Non Compete Law If You Were Fired or Laid Off
Many New York courts have held that a non-compete may be unenforceable against a worker who was fired or laid off without cause. Courts and federal judges in New York do not all agree on this, so being let go does not automatically void the agreement and the exact wording still matters.
What the Employer Must Give Under New York Non Compete Law
New York courts generally treat continued at-will employment as enough consideration for a non-compete signed by a current employee. Extra pay or a bonus is generally not required, though some courts look more closely if the worker was let go soon after signing.
Non Solicit and Non Disclosure Agreements Under New York Non Compete Law
A non-solicit agreement bars contacting the former employer’s clients or coworkers, and a non-disclosure agreement bars sharing confidential information. Neither one stops you from working in your field. New York courts generally enforce these more readily than full non-competes, especially when a non-solicit covers only clients the worker actually dealt with.
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If You Already Signed One: New York Non Compete Law in Practice
Read the full agreement and note the exact duration, area, and type of work it covers, and whether it applies when the job ends for any reason or only when you quit. You can ask the former employer for a written release or waiver before you accept a new offer. Having a New York employment lawyer review the agreement can help you understand how it may apply to your situation.
An employer that believes a valid New York non-compete was broken may ask a court for an injunction ordering the worker to stop the competing work, and may seek money damages for proven losses. Attorney’s fees are generally awarded only if the agreement itself provides for them.
The Federal Rule and New York Non Compete Law
The Federal Trade Commission adopted a nationwide non compete ban in 2024, but a federal court blocked it before it took effect and the FTC later withdrew its defense; as of October 2026 there is no federal ban in force, so New York non compete law controls.
The New York Senate passed bills to ban most non-competes in June 2025 (S4641A) and June 2026 (S9759), with an exception for workers earning very high pay. Neither bill passed the Assembly or was signed into law, so New York law has not changed. The governor vetoed an earlier broad ban in December 2023.
Other New York Non Compete Law Rules to Know
New York courts may “blue-pencil,” meaning they can enforce a narrowed version of an overbroad non-compete instead of throwing it out. Courts are more willing to do this when the employer did not use coercion or overreach.
Under a separate New York rule, a worker who quits may lose deferred pay or benefits for competing if the agreement says so, which courts may treat differently from a direct ban on working.
Think your employer owes you money or broke the law?
A non compete is a contract question, and the answer turns on your own agreement’s words. Your state bar runs a lawyer-referral service that connects you with an employment attorney for a short, low-cost first consultation — find it through the American Bar Association referral directory. Free legal aid may also help if your income qualifies.
New York — the bottom line
- New york non compete law is a reasonableness test decided case by case — the first thing to check is which side of the line your agreement falls on.
- Under New York non compete law, an overbroad term is partial enforcement — a court may sever the overbroad part and enforce the rest only when the employer acted in good faith and did not overreach (BDO Seidman) — the words of your own agreement decide more than the headline rule.
- New york non compete law does not stop you from taking a new job in a different field or outside the restricted area — read the scope before you turn an offer down.
Frequently Asked Questions
Are non competes enforceable in New York?
Sometimes. New York has no general non compete statute; the Court of Appeals’ BDO Seidman v. Hirshberg (1999) test enforces a covenant only to the extent it is no greater than needed to protect a legitimate interest (trade secrets, confidential information, client relationships the employee gained through the job — not a general fear of competition), imposes no undue hardship on the worker and does not injure the public.
A statewide ban passed the legislature in 2023 and was vetoed on December 22, 2023; broadcast employees are protected by Labor Law 202-k.
Is there an income threshold under New York non compete law?
No. New York has no earnings threshold; enforcement turns on whether the agreement is reasonable.
What does a New York court do with an overbroad non compete?
Partial enforcement — a court may sever the overbroad part and enforce the rest only when the employer acted in good faith and did not overreach (BDO Seidman).
Can my employer enforce a non compete in New York after firing me?
Many New York courts have held that a non-compete may be unenforceable against a worker who was fired or laid off without cause. Courts and federal judges in New York do not all agree on this, so being let go does not automatically void the agreement and the exact wording still matters.
I signed a non compete in New York and have a new offer — what should I do?
Read the full agreement and note the exact duration, area, and type of work it covers, and whether it applies when the job ends for any reason or only when you quit. You can ask the former employer for a written release or waiver before you accept a new offer.
Official New York Sources & Resources
- New York State Department of Labor, Division of Labor Standards: https://dol.ny.gov/labor-standards-0
- New York non compete statute: Common law: BDO Seidman v. Hirshberg, 93 N.Y.2d 382 (1999); N.Y. Labor Law 202-k (broadcast employees)
- Verified source: https://www.bsk.com/uploads/12-26-23-A-Ban-No-More-Gov-Hochul-Vetoes-Noncompete-Bill-IMind.pdf
- Verified source: https://www.seyfarth.com/news-insights/new-york-bars-non-compete-agreements-for-broadcast-industry.html
- U.S. Department of Labor, Wage and Hour Division — state payday requirements: dol.gov
- Federal Trade Commission — the non compete rule (status): ftc.gov
- New York bar lawyer referral: https://nysba.org/new-york-state-bar-association-lawyer-referral-service/
This New York non compete law guide was last verified against official New York sources in October 2026. Rules change — confirm the current figure with the state agency or a licensed attorney.
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Disclaimer: This guide is general information, not legal or financial advice. My Unemployment Rights is an independent educational resource, not a government agency and not a law firm. Final-paycheck deadlines, penalties and non compete rules change — every figure here carries the date we verified it. Confirm the current rule with your state labor department or a licensed attorney before you act.