Non-Compete Laws: A State By State Guide - New York

What constitutes a reasonable duration of a non-compete restriction in your jurisdiction?

When determining whether a non-compete agreement is reasonable in duration, New York courts focus on the particular facts and circumstances of each case. This is a highly fact-specific inquiry conducted on a case-by-case basis.

Courts have repeatedly held time restrictions of six months or less are reasonable (Ticor Title Ins. Co. v. Cohen, 173 F.3d 63, 70 (2d Cir. 1999); Natsource LLC v. Paribello, 151 F. Supp. 2d 465, 470–471 (S.D.N.Y. 2001)). Courts also have found longer restrictions to be both reasonable and unreasonable depending on the specific facts of a particular case.

What constitutes a reasonable geographic non-compete restriction in your jurisdiction?

When determining whether a non-compete agreement is reasonable in its geographic reach, New York courts focus on the particular facts and circumstances of each case. This is a highly fact-specific inquiry conducted on a case-by-case basis.

Examples of geographic restrictions found to be reasonable and unreasonable include:

Five counties specified in a non-compete were found to be reasonable in light of the employee's profession (Karpinski v. Ingrasci, 28 N.Y.2d 45 (1971)). .50-mile radius found to be unreasonable (Genesis II Hair Replacement Studio, Ltd. v. Vallar, 674 N.Y.S.2d 207 (App. Div. 4th Dept. 1998)). Syracuse-area hospitals found to be unreasonable (Muller v. N.Y. Heart Center Cardiovascular Specialists P.C., 656 N.Y.S.2d 464 (App. Div. 3rd Dept. 1997)). Metropolitan areas of New York, Los Angeles, Toronto and London, and Continental Europe found to be...