In New York, non-compete agreements are still legal and enforceable, but only if they meet a strict common-law "reasonableness" test set by the state's highest court. Unlike states such as California, North Dakota, Oklahoma, and Minnesota that ban most non-competes outright, New York has no statewide ban as of 2026. A New York legislature bill that would have prohibited nearly all non-competes (Senate Bill S3100A) passed in 2023, but Governor Kathy Hochul vetoed it in December 2023. That means the older court-made rules still control: a New York non-compete is only enforceable to the extent it is reasonable in time and geographic scope, protects a legitimate employer interest, does not impose undue hardship on the worker, and does not harm the public.
New York's Reasonableness Test
The controlling standard comes from the New York Court of Appeals decision BDO Seidman v. Hirshberg. Under that test, a non-compete restriction is enforceable only if it satisfies all of the following:
It is no greater than necessary to protect a legitimate business interest of the employer.
It does not impose undue hardship on the employee.
It is not injurious to the public.
It is reasonable in duration and geographic area.
New York courts recognize only a narrow set of "legitimate interests" that can justify a non-compete. These generally include protecting genuine trade secrets or confidential information, protecting customer goodwill and customer relationships the employer paid to develop, and preventing the loss of an employee whose services are truly unique or extraordinary. An employer cannot use a non-compete simply to stop ordinary competition or to keep a worker from earning a living in their field.
How Courts Apply It in Practice
There is no fixed statutory number of months or miles in New York. Whether a restriction is reasonable depends on the facts. As a general pattern, New York courts have often upheld restrictions of roughly six months to two years when the scope is tied closely to the actual interest being protected, and have struck down or narrowed restrictions that are longer, broader, or that sweep in customers or work the employee never touched. A nationwide or indefinite ban on working in an entire industry is very likely to be found unreasonable.
New York courts also have the power of "blue penciling" or partial enforcement. Rather than throwing out an overbroad agreement entirely, a court may narrow it and enforce only the reasonable portion, though courts are more reluctant to rewrite agreements where the employer acted in bad faith or imposed an overreaching restraint knowingly.
Limits and Special Protections
Although New York has no general low-wage non-compete ban, several protections exist:
Broadcast employees: New York Labor Law Section 202-k prohibits broadcasting employers from enforcing non-compete agreements against certain on-air and broadcast-industry employees.
Lawyers: Under New York's rules of professional conduct, agreements that restrict a lawyer's right to practice after leaving a firm are generally unenforceable.
Public-interest balancing: In fields like health care, courts weigh patient access and continuity of care when deciding whether to enforce a restriction.
Be aware of related clauses that are often easier to enforce than a pure non-compete. Non-solicitation agreements (limiting which clients or coworkers you may approach) and confidentiality / trade-secret agreements are frequently upheld even where a broad non-compete would fail, because they are seen as less restrictive of your ability to work.
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Recent Law Changes and the Federal Picture
Two big developments shaped the current landscape. First, the New York legislature's near-total ban was vetoed in December 2023; Governor Hochul indicated openness to a narrower bill (for example, one with an income threshold exempting higher earners), but no such replacement had become law as of early 2026. Lawmakers have continued to introduce non-compete legislation, so the rules can change. Always check for newer law before relying on this summary.
Second, on the federal side, the Federal Trade Commission issued a rule in 2024 to ban most non-competes nationwide, but a federal court set that rule aside in August 2024, and it is not in effect. There is currently no federal statute that broadly bans non-competes, so New York's state common law remains the governing standard for most New York workers.
What to Do If You Are Asked to Sign or Are Being Threatened
If an employer asks you to sign a non-compete:
Read it before signing and note the duration, geographic area, and exactly what activity it restricts. Ask for the restriction to be narrowed or removed, or for additional pay or a severance benefit in exchange.
Get a copy of anything you sign and keep it. You may need it later.
Do not assume a broad clause is enforceable. Many New York non-competes are written far more broadly than a court would enforce.
If a former employer threatens to enforce a non-compete or sends a cease-and-desist letter:
Do not panic or quit a new job reflexively. A threat is not a court order. Evaluate whether the restriction would actually pass New York's reasonableness test.
Consult an employment attorney promptly, especially before starting a competing job. Many offer initial consultations, and the stakes (injunctions, legal fees) can be high.
Preserve documents and communications related to your departure and your new role.
Where to Verify
Because non-compete law in New York is mostly court-made and is an active area of legislation, confirm the current state of the law before acting. The New York State Department of Labor is the state's primary labor and workforce agency and is the right starting point for wage and employment questions; the New York State Attorney General's office has also investigated and challenged abusive non-compete practices. For your specific situation, a licensed New York employment lawyer can assess whether a particular agreement is enforceable against you.
For context on wages, the federal baseline under the Fair Labor Standards Act (FLSA) is a $7.25 minimum wage and overtime after 40 hours in a week. New York's minimum wage is substantially higher: as of 2026 it is in the range of roughly $16 to $17 per hour depending on your region (New York City, Long Island, and Westchester are higher than the rest of the state), and it is scheduled to adjust over time. Confirm the exact current figure for your county with the New York State Department of Labor, since these rates change on a set schedule.
Official New York Sources
This page is based on New York employment law. Rules and figures change — verify the current details directly with the official New York sources below. This is general legal information, not legal advice.
Federal law and local ordinances may also apply. Federal laws like the Fair Labor Standards Act set a national floor, and your city or county may add protections (such as a higher local minimum wage or paid sick leave). Check both alongside New York state law.
Frequently asked questions
Does New York ban non-compete agreements?
No. As of 2026, New York has no statewide ban. A bill that would have prohibited nearly all non-competes passed the legislature in 2023 but was vetoed by Governor Hochul in December 2023. Non-competes remain enforceable in New York if they meet the courts' reasonableness test.
What makes a non-compete enforceable in New York?
Under the BDO Seidman v. Hirshberg standard, the restriction must be no greater than necessary to protect a legitimate employer interest (such as trade secrets, confidential customer information, or truly unique services), must not impose undue hardship on the employee, must not harm the public, and must be reasonable in time and geographic scope.
Are there any New York workers who cannot be bound by a non-compete?
Yes. New York Labor Law Section 202-k protects many broadcast-industry employees, and lawyers generally cannot be restricted from practicing after leaving a firm. Courts also weigh public interest factors, such as patient access in health care, when deciding whether to enforce a restriction.
Did the FTC's federal non-compete ban take effect in New York?
No. The FTC issued a rule in 2024 to ban most non-competes nationwide, but a federal court set it aside in August 2024, so it never took effect. New York's state common law remains the governing standard for most workers.
What should I do if my old employer threatens to enforce a non-compete?
Do not assume the clause is enforceable, and do not quit a new job reflexively. Many New York non-competes are written more broadly than a court would enforce. Keep your documents, and consult a New York employment attorney before starting a competing job, since injunctions and legal fees can be significant.
This article is general legal information, not legal advice, and may not reflect the most current law or the law in your jurisdiction. Laws vary by state and change over time. For advice about your specific situation, consult a licensed attorney.
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