Business owners in New York want to protect their companies from departing employees who might share trade secrets or join competitors. This makes non-compete agreements (NCAs) and non-disclosure agreements (NDAs) vital tools. Still, their enforcement often leads to legal disputes in NY courts.
What are non-compete and NDA agreements?
NCAs prevent employees from working for competitors or starting similar businesses after leaving their jobs. NDAs keep confidential information within the company. NY courts consider these agreements based on what makes sense for both the business and the worker.
NY courts and their stance
NY judges check three main points when looking at non-compete cases:
- Does the business need this protection?
- Will it make it too hard for the worker to find a job?
- Does it hurt the public good?
For NDAs, judges focus on these key areas:
- What exact information needs protection
- How long the agreement should last
- Why the business needs to keep the information secret
NY courts today favor shorter and more focused non-compete agreements. They work best when they:
- Cover a clear area or location
- Last for a reasonable time (usually 6-18 months)
- Match the employee’s actual job and field
Judges take NDAs more seriously, especially when someone might share company secrets. They can quickly stop employees from sharing information while the court case progresses.
Courts can also fix agreements that ask for too much. Instead of throwing out the whole agreement, they can remove the parts that go too far, helping to keep the important protections in place.
Getting expert legal advice early can save time and money if you face issues with these agreements as an employer or employee. Each case brings its challenges, and a lawyer who knows NY employment law can guide you through your options.
