February 21, 2024

I recently learned that the prohibition on restrictive covenants in New York did not pass. What does this mean for enforceability of my current restriction?  

Dr. X

Hi Dr. X, you are absolutely correct, a proposed bill restricting non compete agreements was vetoed by Governor Hochul. So, the law of New York stands that where a restriction is reasonable in geography and duration, it will be upheld.  Another standard, there must be a legitimate business interest to protect. Whether or not your specific non compete will be upheld depends on the applicable factors involved, and also on the judge enforcing.  As perhaps some recent opinions have enforced, a judge may act as jury and executioner in certain circumstances - leaving your fate up to a judge may result in a surprise result, for either side (which is why so many cases settle...).