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Enforceability of Non-Compete Agreement in NYC

Asked over 2 years ago - New York, NY

I live and work in NYC as a sales rep and just received a threatening letter from my old employer saying I violated their non-compete agreement(from their attorney). It did not mention anything about an injunction - basically just threatening that they can get one if they want. Do you think that it's just a scare tactic so that my current employer fires me? If we moved forward basically saying I'm going to continue working here - if they really had a way to produce an injunction, wouldn't they have done so already? Any info would be greatly appreciated.

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Attorney answers (2)

Chintan Vijay Panchal

Reputation Level 6

Answered over 2 years ago. Contracts / Agreements Lawyer in New York, NY.

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In your employment/separation agreement from your old employer (where the non-compete was presumably agreed) there will likely be language along the lines of the following: in the event of a breach of the non-compete, traditional remedies would be inadequate and you therefore agree that injunctive relief would be warranted. If this language exists, this may be what they are referring to. In any event, there is a relatively high burden to obtain injunctive relief in New York, and their ability to do so would depend on the facts of your situation.

DISCLAIMER—This answer is for informational purposes only and is not intended as specific legal advice regarding your question. This answer does not establish an attorney client relationship.

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Kaiser Wahab

Reputation Level 14

Answered over 2 years ago. Business Attorney in New York, NY.

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Adding to the previous poster, it is critical that you review the agreements that you signed in connection with your employment. There may be two agreements (an employement and separation agreement, for example), or a single agreement that may impose, geographic, temporal, and other restrictions on your ability to perform the job functions you are performing now.

One thing to absolutelyunderstand, unlike CA, in NY non-competes are absolutely enforceable. Secondly,simply because you received a demand letter as opposed to a complaint/request for injunction does not necessarily mean they are not capable/serious about doing so if you don't comply with their demand. It is a typical first step in any such situation to send a demand letter prior to initiating suit. So again, the language in the agreement(s) is key.

I hope this helps.

Disclaimer: This answer is for informational purposes only and does not constitute general or specific legal advice, nor create an attorney client relationship.

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