New York Employers, Read This Before You Lock Anyone into a Non-Compete

Non-competes can feel like a safety net—until they backfire. If you're an employer in New York thinking about locking someone into one, take a pause. These contracts are under serious legal scrutiny, and if you’re not careful, you could end up in court defending a clause that does more harm than good. Before you put pen to paper, it’s smart to talk with our experienced commercial litigation attorneys who know the limits of New York law and how to craft agreements that stick.

At Horn Wright, LLP, we help employers across New York protect their businesses without overstepping. Whether you’re managing executive-level hires in Albany or startup staff in Brooklyn, we’ll guide you through the legal strategies that actually work. Because the last thing you want is a contract that gets tossed—or worse, one that gets you sued.

When a Non-Compete in NY Is Actually Worth It

Non-competes aren’t always bad. In the right situation, they make sense. The key is knowing when they’re truly justified—and legally enforceable.

High-Stakes Roles and Sensitive Client Access

A non-compete can be more defensible if the employee had:

• Direct access to high-value client lists
• Influence over contract negotiations
• Control over long-term client relationships

Courts in New York are more willing to uphold restrictions when a former employee could walk out the door and take key accounts with them.

Key Personnel with Trade Secrets

If the role involves inside access to:

• Proprietary product development
• Confidential financial models
• Internal strategy or pricing data

…then a non-compete may be your best shot at protecting the business. Just make sure the contract clearly defines what you're trying to protect—and how long you reasonably need that protection to last.

Are You Overdoing It? How to Avoid Abusing Non-Compete Clauses in New York

Too many employers slap non-competes onto every offer letter without thinking through the consequences. But in New York, overly broad restrictions often don’t survive a legal challenge.

Clauses That Don’t Hold Up in NY Courts

Here’s what will likely get your non-compete tossed:

• Banning someone from working in an entire industry
• Restrictions longer than one year for non-executive roles
• No clear link to protecting a legitimate business interest

If the clause reads more like punishment than protection, expect a judge to strike it down.

Repercussions of Overreaching Restrictions

Trying to enforce a bad non-compete can backfire in several ways:

• Legal fees and court costs from defending the clause
• Negative publicity or damage to your brand reputation
• Losing talented workers who feel boxed in or betrayed

It’s not just about whether you can enforce the clause. It’s about whether it’s worth the risk.

Why an NDA Might Be All You Need in a NY Employment Contract

In many cases, you don’t need to limit where someone can work. You just need to make sure they don’t walk off with your secrets.

Protecting Your Business Without Blocking Someone’s Future

A solid non-disclosure agreement (NDA) can:

• Bar employees from sharing proprietary information
• Require return of sensitive data upon termination
• Prevent misuse of client lists or financial strategies

NDAs allow employees to move on—without putting your business at risk. They’re also more likely to be enforced without pushback.

When NDAs Stand Strong and Don’t Backfire

Courts are far more receptive to NDAs that:

• Focus specifically on confidential business information
• Include time-bound and clearly defined terms
• Avoid overly vague or catch-all language

Want long-term protection? Pair an NDA with a narrowly tailored non-solicit clause. That way, you’re not stopping someone from getting a new job—you’re just protecting your client base.

Draft Smarter, Not Stricter

Not every employee needs a non-compete. And in New York, being too aggressive could come back to bite you. At Horn Wright, LLP, our commercial litigation attorneys help employers craft fair, enforceable agreements that hold up when it matters most. If you're serious about protecting your business, it’s time to hire one of the best law firms in America. Call us today—let’s make sure your contracts work for you, not against you.