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Enforceable with limits

Non-compete enforceability in New York

BDO Seidman partial-enforcement rule: covenant enforceable to the extent reasonable, but only if employer didn't engage in overreaching or coercive conduct.

What this means for you

New York generally enforces non-competes that protect a legitimate business interest and are reasonable in duration, geography, and scope. Courts apply this state's reformation or blue-pencil approach to overbroad clauses.

Primary statute

N.Y. Lab. Law § 202-k (broadcast — 2024 Broadcast Employees Freedom To Work Act)

Secondary
Effective
2024-01-01
Research verified
2026-05-08

Doctrine

Partial enforcement (BDO Seidman). Courts narrow over-broad covenants to the extent reasonable, but only if the employer did not engage in overreaching or coercive bargaining-power abuse.

Industry-specific rules

  • broadcast

    Voids non-competes for broadcast employees.

    N.Y. Lab. Law § 202-k (Broadcast Employees Freedom To Work Act 2024)Secondary

Gotchas

  • NY is closer to limited reformation than pure blue-pencil — 'partial enforcement' lets courts narrow rather than mechanically strike.
  • Overreaching / coercive bargaining-power-abuse fact pattern can void the entire covenant.
  • Several proposed statewide non-compete bans have failed in the legislature; current floor is BDO Seidman.

Federal context

The FTC's 2024 federal non-compete ban was vacated nationwide in Ryan v. FTC and removed from the Code of Federal Regulations in February 2026. There is no federal ban in force — so New York's state law controls. Read the federal status.

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