A non-competition obligation must meet all of the following conditions, which must be considered appropriate by the New York State courts: a non-competition agreement is considered appropriate only if it «is not more important than what is necessary to protect the legitimate interest of the employer, 2) does not impose unreasonable severity on the worker and (3) does not harm the public.» BDO Seidman vs. Hirshberg . A violation of one of these three factors invalidates a non-competition agreement. On the other hand, the employer can take legal action to obtain what is called a «declaration of omission» to prevent you from violating your agreement. Since a violation of a no-competition agreement can cause direct harm to the employer, the Tribunal will often apply expedited procedures in these cases. No no. To be bound by an agreement, you must approve the terms of the agreement – for example. B by reading and signing. There must be a meeting of spirits. New York has strong public policies to give individuals the right to work and support themselves.
While a non-competition agreement may be valid to the extent that it favours a legitimate employer objective, it is not valid if its sole purpose is to restrict competition. There must be good reasons to justify the application of a non-competition clause. According to the Attorney General, «except that a person has very unique skills or access to trade secrets, there is no place in a worker`s employment contract.» A person is dismissed without cause if the dismissal is not due to a fault. A resignation from Encore unzul. The reason is that an employee is dismissed for gross misconduct, such as theft, assault or similar behaviour. Some executives have employment contracts that define the behaviour of a «motivated» dismissal. Today, most of New York`s executives are subject to competition bans. And many of them are fired for no reason or end up being fired. They feel trapped by their non-compete clause. They want to stay in their field because that is where they offer the greatest value. They have bills to pay and families to support.
But their non-competition prohibitions prohibit working in their field. In addition, most of these executives do not have access to their former employer`s trade secrets. They generally occupy distribution, management, operating or other sectors that do not require access to the company`s true business secrets. An employer can only impose a non-compete agreement against a worker if it can prove a legitimate interest that must be protected. In most cases, the only legitimate interest that justifies the application of a non-competition clause is a trade secret. This means that your non-compete agreement will not be enforced unless your company has trade secrets and you know it. Very few people have a real knowledge of a company`s business secrets. Have they brought all the benefits promised in the agreement? As a result, workers at all levels are limited by these agreements. Non-competitive agreements are considered «trade restrictions» – and are unlikely to be enforced if they are deemed «unreasonable.» But there is no reason to feel trapped by this non-competition agreement. It is unworkable in this situation. Most companies are unable to meet the legitimate interest test, making the non-compete agreement unenforceable.
If you do not have detailed knowledge of your trade secrets, your non-compete agreement is unlikely to apply. In assessing a non-competition agreement, the court will consider the following: it is well established that the New York courts will not apply a non-compete agreement if the former employee has been dismissed without cause.