QUESTION

Who can help me to explain "covenant not to compete" clause in my employment contact?

Asked on Mar 25th, 2021 on Labor and Employment - New York
More details to this question:
I am looking for a new job and want to get clarifications on what the non-competitive clause means, and what are limitations it puts on my job seeking activity .
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1 ANSWER

Labor and Employment Attorney serving Tarrytown, NY at Urba Law PLLC
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Noncompetition covenants or clauses vary from employer to employer. Some are highly specific. Others are very general. Courts will enforce them to protect either side. New York uses a balanced approach. Are the restrictions reasonable given the job, industry, geographic area, duration of time restricted? No lawyer can opine regarding whether any one contract or clause is reasonable without reviewing the entire agreement, policy, restriction, handbook, or any other document which might be tied to the restriction. Some covenants apply laws from other states. They are generally enforceable. But there are states with public policies which are truly obnoxious to New York's and might not be enforced. The best thing to do is to see whether an employer insists that a prospective employee sign the agreement. Then request some time to read and review the agreement, meaning paying an employment lawyer to actually read and make some notations on the agreement before signing. Signing is a bargain. An employee agrees to be compensated in exchange for agreeing not to compete with the employer if they leave. Of course, the terms or conditions of departure will likely be relevant to enforceability. Courts are leaning towards enforcing agreements between parties. Agreements between employers and employees. Therefore, a wise employee will request an employment lawyer to review any agreement before signing. That way, the prospective employee understands the risks they assume if things don't work out.  Employees can face some real challenges, especially highly compensated ones or those with entrepreneurial spirits, if they sign an agreement and determine the job is not a good fit. Good luck.
Answered on Mar 25th, 2021 at 11:30 AM

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