New York Non-Compete Agreement Template
Reviewed by the Agiled editorial teamUpdated June 2026
Non-compete law is the most state-divergent area in employment contracting — four states ban these agreements outright, a dozen more impose salary floors or notice rules, and the rest apply judge-made reasonableness tests that differ in temperament. This page covers what New York requires; the download is our standard non-compete template, to be scoped to New York's rules below.
New York non-compete rules at a glance
| Enforceability | Enforceable under strict common-law scrutiny (BDO Seidman test); a 2023 statewide ban was vetoed. |
|---|---|
| Protected workers / thresholds | Broadcasters have statutory limits; attorneys barred by professional rules |
| Required formalities | No statutory notice or salary threshold; consideration and reasonableness rules come from case law. |
| Overbroad agreements | Partial enforcement possible but conditioned on the employer's good faith |
State laws change frequently and this summary is not legal advice. Verify current rules against the state statute or with a licensed attorney before relying on them.
How New York handles non-compete agreements
New York's good-faith condition has real bite: courts refuse to trim overbroad agreements when the employer knowingly overreached — drafting aggressively and hoping for a judicial rescue backfires there. The practical drafting rule for New York: enforceable under strict common-law scrutiny (BDO Seidman test); a 2023 statewide ban was vetoed.. Before using this template, confirm the current statute — non-compete law has changed in more than a dozen states since 2020, and the FTC's federal ban attempt keeps the area moving.
New York non-compete agreement FAQs
Are non-compete agreements enforceable in New York?
Enforceable under strict common-law scrutiny (BDO Seidman test); a 2023 statewide ban was vetoed. Coverage limits matter here: broadcasters have statutory limits; attorneys barred by professional rules.
What happens to an overbroad non-compete in New York?
Partial enforcement possible but conditioned on the employer's good faith Draft to the narrowest restriction that protects the actual business interest — the safety net (or lack of one) above is what you're betting on.
What formalities does a New York non-compete require?
No statutory notice or salary threshold; consideration and reasonableness rules come from case law. Procedural failures are now the most common way non-competes die — more common than substantive overbreadth in states with notice rules.
Does the FTC non-compete ban apply in New York?
The FTC's 2024 rule banning most non-competes was set aside by a federal court before taking effect and remains in litigation, so it is not currently in force in New York or any state. State law controls — which is why the state-specific rules above are the ones to draft around.
The full non-compete agreement guide
Clause-by-clause guidance, common mistakes, and the complete template text live on the main page: Non-Compete Agreement Template — full guide and download.