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Business and Corporate Litigation: Noncompete Agreements

 

When a company hires a new employee in an industry that may involve trade secrets or other confidential business information, it is common for the business to require the new employee to sign an agreement that limits their ability to practice in a similar business enterprise for a period of time and within a specified geographical area.

 

Noncompete agreements provide business owners with a certain degree of assurance that the specialized knowledge they provide to new employees will not soon thereafter be used against them in a similar competitive business enterprise in a similar geographic region.

 

In New York it has been the rule for the past 35 years that a restrictive covenant will only be subject to specific enforcement to the extent that it is reasonable in time and area, necessary to protect the employer’s legitimate interests, not harmful to the general public and not unreasonably burdensome to the employee.

 

Courts in many states will uphold the validity of a noncompete agreement provided that it is reasonable in its limitation of time and geography. What is "reasonable" depends on the court and the unique circumstances of a particular case.

 

Holman Law represents employers and employees in noncompete agreement litigation.

 

Holman Law is pleased to assist clients throughout the metro New York area, and other areas throughout New York.

 

To contact Holman Law call (212) 481-1336. You may also contact us by email.

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