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Non-Compete Laws in New York

New York has no general non-compete statute; under BDO Seidman v. Hirshberg, a restraint is enforced only if it is no greater than needed to protect the employer's legitimate interest, does not unduly burden the employee and does not harm the public.

Last checked . General information, not legal advice.

New York at a glance

Status
Enforceable if reasonable (case law)
Courts apply the BDO Seidman test. Senate bill S4641 (2025) to ban most non-competes passed the Senate but was in Assembly committee when checked.
Enforceable against employees
Yes, if reasonable

Sources

Last checked

The rules in New York

Are employee non-compete agreements banned, restricted or enforceable in New York?

Status in New York: Enforceable if reasonable (case law). Courts apply the BDO Seidman test. Senate bill S4641 (2025) to ban most non-competes passed the Senate but was in Assembly committee when checked.

Can an employer enforce a non-compete against an employee in New York?

Yes, if reasonable. Enforceable against employees in New York: yes, if reasonable.

Where do the New York non-compete laws come from?

The rules above come from BDO Seidman v. Hirshberg, 93 N.Y.2d 382 (1999). Each source is linked on this page. We last checked them in October 2026.

Good to know

A 2023 bill banning non-competes (S3100/A1278) was vetoed. Senate Bill S4641 passed the Senate on June 9, 2025 and was listed as in Assembly committee on October 20, 2026.

What this means in practice

Read the restriction closely before signing. Note how long it lasts, the area it covers, which activities it bars and which state's law the contract says applies. A choice-of-law clause does not always control, because some states refuse to apply another state's law to their own residents or workers.

Salary thresholds are often adjusted every year for inflation. If a state uses a threshold, check the figure for the year the agreement was signed or is being enforced, and how the statute defines earnings.

A non-compete is different from a non-solicitation or confidentiality agreement. Many states that limit non-competes still allow narrower clauses that protect trade secrets or customer lists. An employment lawyer can explain how the rules apply to a specific agreement.

General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.