Noncompete agreements are an effective way for businesses to protect their interests, but they can limit your future job options as an employee. These contracts may stop you from working for competitors after you leave your current job.
New York has rules about noncompete agreements you need to know. Before you sign, make sure you understand how it could affect your career.
Understanding the basics of noncompete agreements
A noncompete agreement is a contract between you and your employer. For it to be potentially enforceable, it will likely include:
- Time limits on working for competitors
- Areas where you can’t work
- Jobs or industries you can’t enter
Employers use these agreements to protect their business. But they can make it hard for you to find new work or advance your career.
Key elements to consider before signing
Employees often have to deal with noncompetes when starting a new company. The next time you find yourself reading through an agreement, look out for these things:
- Geography and time: When it comes to new employment, be wary of unreasonable time and geography restrictions.
- Competition limits: It can be good to understand what kinds of jobs or industries are off-limits if you were to end your employment.
- Benefits: You should get a clear picture of what compensation you will receive for signing the contract.
All these points can have a profound effect on your career ambitions moving forward. Therefore, you should be thorough in your review to avoid contracts with terms that may be unfair to you.
Furthermore, New York courts may scrutinize the agreement to determine if it is fair and needed to protect the employer’s business. If it is too strict, they might not enforce agreements that are too broad or unreasonable.
Noncompete agreements can affect your career for a long time. Knowing what to look for and how they work in New York can help you make smart career choices and protect your rights as an employee moving forward.
